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The proceeds of the issue are intended to improve the existing portfolio, increase the Companys holdings in the Canadian REIT fund and in debt recycling Yitzhak Tshuva , the controlling shareholder in the energy and holdings group, is again bringing his real estate activity in Canada to the stock exchange, and now wants to raise up to NIS 260 million ($ 95 million) in a bond issue for Elad Canada Realty. The company is engaged in the management, maintenance and development of real estate in the center of Canada, mainly in the cities of Toronto and Montreal, the proceeds of which are intended to improve the existing portfolio, increase its holdings in the Canadian REIT fund and debt recycling. According to the draft prospectus, Elad Canada plans to use $ 28 million of the funds raised to repay a credit line with a high interest rate of close to 10%, and an additional $ 50 million is earmarked for the repayment of the equity component provided for acquisition of the Galleria property. In Toronto, which includes an area on which a multi-stage residential, commercial and office space project is planned. Elad Canada plans to issue shekel bonds backed by net surpluses in projects most of which are addicted to a 3 year maturity period. Most of the funds payments are expected in the third quarter of 2022 and are expected to be repaid in the first quarter of 2020. According to data provided by the company, Elad Canada now owns residential, office and commercial building rights in various stages of development, totaling 4.5 million square feet (approximately 420,000 square meters), of which 1.5 million square feet (about 140,000 square meters) ), In the construction of 1,500 units for condominiums, while the company notes that more than 80% of them are already sold. Elad Canada also holds 19% of the Canadian public REIT fund, which, according to the company, owns dozens of income-producing properties, including office and industrial properties in central locations throughout Canada and the US. The Elad Canada bond series will be backed by a lien on the surplus of projects with a debt-to-debt ratio of about 1.5, the principal collateral being the Emerald City project in Toronto, in which the company built 9 residential buildings for sale and for rent that include 2,000 apartments, Compound pools and urban infrastructure. Revenue in 2017 rose sixfold According to its financial reports, in the year 2017, Elad Canada benefited from a nearly six-fold increase in its revenues, which grew to CAD181 million (compared with USD 32 million in 2016), mainly due to the sale of an apartment building and recognition of the occupancy of another building. The increase in the value of the companys Gallery property helped Elad Canada to present C $ 138 million in the asset revaluation section, so that its annual net profit last year jumped to $ 155 million, after net income of less than $ 13 million in 2016 and less than $ 7 million Million in 2015. |
