Delek Belron International Ltd. (TASE:DLKI.B1) the international real estate arm of Delek Real Estate Ltd. (TASE: DLKR) is in advanced stages of negotiations for the acquisition of 17-19% of the shares of a foreign company which owns 47 hotels in the UK. The chain has been run by the Marriot International chain (NYSE: MAR) for 30 years. The hotels will be purchased from the Royal Bank of Scotland (LSE:RBS) and from the Marriot chain.
The chain is valued at NIS 8.6 billion. Delek Belron will invest NIS 1.46-1.63 billion. Delek reported that the hotels produce an average net annual income of NIS 640 million.
The deal will be led by Delek Belron together with businessman Yigal Ahouvi and the Irish fund Queenland.
Delek Belron today reported a sharp 123% rise in its profits for January-September to NIS 318.4 million, from NIS 142.5 million in the corresponding period of 2005 and NIS 218 for all of 2005.
In the third quarter alone, the company posted a profit of NIS 51.4 million compared with NIS 77.8 million the corresponding quarter of 2005. It reported that in the third quarter of 2005 it included NIS 68.5 million in revenue from a non-recurring event as a result of profit taking on some of its UK assets.
Published by Globes [online], Israel business news - www.globes.co.il - on November 15, 2006
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