IDBG, owned Properties and building And IDB, sells its assets inLas Vegas For $ 216 million. Today, Properties and Building reported that after a competitive procedure conducted by IDBG to realize its assets, including the Tivoli project (a commercial and office project) located in the Summerlin neighborhood of Las Vegas, Nevada, and land reserves adjacent to the residential construction project, IDBG entered into a 3D sale agreement. million dollar.
Properties and Building holds 74.18% of IDBG’s shares, while IDB holds 25.82% of the company. The sale was led by Property and Building Management headed by the CEO Doron Cohen, Along with U.S. Property and Building CEO Eli Elephant in close collaboration with IDB.
CEO DSK Doron Cohen Properties and Building said: “We were able to sell the Tivoli at a price and conditions that exceeded expectations throughout the process. The realization of the property is a significant milestone in the activity of Properties and Building and it comes about a week after the successful sale of HSBC. Adopted with the final contenders. The sale was made possible thanks to the staff work of the company’s management and operations manager in the United States, Eli Elephant, in close cooperation with the partner, attorney Ofir Naor, and a trustee of IDB. “We are satisfied with the sale of IDBG’s assets, led by the Tivoli project located in the prestigious Summerlin neighborhood in Las Vegas, and with the increase in the company’s cash balances.”
The prestigious Tivoli project that includes commerce and offices is located in the Summerlin neighborhood of Las Vegas. Phases A and B are approximately 62,000 square meters. Land reserves sold as part of IDBG’s assets include building rights for approximately 466 housing units. To complete the sale, Properties and Building contracted with Cushman & Wakefield, a global real estate investment advisor, who coordinated the IDBG property marketing process.
In accordance with the provisions of the sale agreement, the clerk acquires from Trustee, at the expense of the consideration, a hard (irrevocable) deposit in the amount of $ 10 million. The date of completion of the transaction will apply 60 days from the end of the due diligence period of 30 days.
Note that approximately 25.82% of the shares of IDBG are held by IDB, a company held by a trustee appointed by the Tel Aviv-Yafo District Court, IDBG’s engagement in the sale agreement is also subject to the court’s approval, and to the extent If this confirmation is not received, the sale agreement will be canceled and the deposit will be refunded to the buyer.
Subject to the completion of the transaction, IDBG is expected to have a net cash flow, in the amount of approximately $ 87 million, which will be divided between assets and a building and IDB. This, after the repayment of the loan from the US Bank as stated above, the repayment of the institutional loan and other selling costs.
Properties and Building reported that considering the company’s investment balance in IDBG recorded in the company’s books as of September 30, 2121 (approximately NIS 163 million), and given the transaction costs, it is expected to post a profit from the realization of IDBG assets in the estimated amount of NIS 60 million. , When in the fourth quarter of 2021 the company is expected to impose an estimated loss of approximately NIS 45 million, which relates to a decrease in the value of a loan granted by the company to IDBG and its adjustment to its fair value at the end of the year.
While at the time of completion of the transaction, the company is expected to post to the library a profit of approximately NIS 105 million, which reflects the difference between the net receipt expected to be received from IDBG and the value in the company’s books of the investment in IDBG. The imputation of the said profit is attributed, among other things, to the manner in which the investment in IDBG’s accounting is handled in accordance with the provisions of the amendment to International Accounting Standard No. 28.
The acquirer is 3D Investments LLC which is a real estate investment group established in the 1970s, which owns, operates and develops real estate properties in California, Nevada and throughout the United States. The company is headquartered in Los Angeles.
As mentioned, the sale was successfully led by Property and Building Management, headed by CEO Doron Cohen, together with US Property and Building CEO Eli Elephant, CFO Baruch Yitzhak, VP and Company Spokeswoman Larissa Cohen, Christina Roush and Marlene Fujita Winkel of Cushman & Wakefield who coordinated the competitive process for the sale of IDBG assets, and attorney David G. Alleman of the Marquis Aurbach Coffing firm in Las Vegas.