|By Aviv Levy, Globes, Tel Aviv,
IsraelMcClatchy-Tribune Regional News
March 9, 2010 --Sources inform "Globes" that real estate company Mishorim Development Ltd. (TASE:MSHR), controlled by president Gil Blutrich, has completed the acquisition of Toronto's King Edward Hotel.
In October 2009 Mishorim's subsidiary Skyline International Development signed an agreement to buy the King Edward Hotel for $48 million. Mishorim owns 70 percent of Skyline, with Israel Land Development Company (TASE: ILDC) controlled by Ofer Nimrodi holding the other 30 percent.
The King Edward Hotel is a five star hotel with 298 rooms, covering 55,000 square meters, with a further 16,000 square meters available for development. Mishorim plans to develop this land and lease it to commercial enterprises.
Hadas Arazim analyst Tzur Ilan said, "Skyline is priced quite cheaply and meanwhile is operating according to the targets it has set for itself. This deal is important for the company. On the assumption that the deal has been closed within the range Mishorim reported, then it has potential for major improvement."
Hadas Arazim has a "Buy" recommendation for Mishorim's share.
Mishorim's share was unchanged today on the TASE at NIS 1.16.
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Copyright (c) 2010, Globes, Tel Aviv, Israel
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