London-listed Delek Global Real Estate (DGRE) has insisted that the consortium behind the CHF 3.4bn (EUR 2bn) acquisition of investment properties from Swiss retail group Jelmoli is conducting final negotiations and that it is confident of closing the transaction in due course. The financing banks are also committed to closing the deal, DGRE said in a statement.
London-listed Delek Global Real Estate (DGRE) has insisted that the consortium behind the CHF 3.4bn (EUR 2bn) acquisition of investment properties from Swiss retail group Jelmoli is conducting final negotiations and that it is confident of closing the transaction in due course. The financing banks are also committed to closing the deal, DGRE said in a statement.
The announcement was a response to recent press speculation that the turmoil in the financial markets could derail the largest property portfolio sale in Swiss history. Some reports suggested that Jelmoli was resisting a request by Israeli-owned Delek for a cut in the transaction price. In a statement on Wednesday, DGRE said the Jelmoli acquisition consortium remains committed to conclusion of the deal 'as soon as the final closing mechanics and terms are agreed'.
The consortium includes Delek’s Israeli parent, Delek Belron International and Blenheim Properties Group, a subsidiary of the group headed by Israeli investor Igal Ahouvi. About 80% of the portfolio, which includes the landmark Jelmoli Department Store in Zurich, comprises retail stores and shopping centres. The rest consists of office buildings.
