Company to sell 47 shopping centers to Blackstone, DDR in deal valued at $1.4 billion, expected profit $220 million. Once properties are sold, Elbit to remain with two US assets worth $43 million
Maayan Manela, Calcalist
Elbit Imaging, controlled by businessman Motti Zisser, announced Wednesday that it had signed an agreement to sell, through the EPN Group, 47 shopping malls throughout the United States at an overall deal value of $1.428 billion.
The buyer is a joint venture owned by Blackstone and DDR Corp. Elbit is expected to gain a $220 million profit from the selloff.
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Calcalist revealed in the beginning of January that the Blackstone investment fund beat the KKR fund to the deal for Zisser’s US shopping center activity after outbidding KKR.
Elbit invested a total of $358 million in the acquisition of the malls. The properties’ $934 million debt will either be repaid by the seller upon conclusion of the deal or assumed by the purchaser.
Once the deal is closed, EPN will keep the cash balance – $30 million. After the sale, EPN will still own two properties in the US at a value of $43 million and a $14 million debt attributable to the properties.
The deal is expected to be finalized on June 2012, subject to a limited due diligence evaluation carried out by the buyers by the end of January and to several suspended conditions.
‘US can still offer opportunities’
According to Elbit Imaging Co-CEO Dudi Machluf, „After completing the deal, we will maintain our investment platform in the US and the experience and expertise we gained in the American continent, which consolidates the experience and expertise we have gained in North America.
„We believe that the US can still offer us opportunities that are suitable to our fund’s profile.
„We aim to continue our operations in the US with our existing partners and to use the experience we have gained to recruit new investors to ensure the US remains an essential part of the company’s activity in the years to come.”
