Property & Building, IDB sell Las Vegas assets

IDBG, owned by Property & Building and IDB, is selling its assets in Las Vegas for $216 million. Property & Building announced today that after an auction held by IDBG to realize its assets, which consist of the Tivoli Village residential and commercial project in the Summerlin neighborhood of Las Vegas, Nevada, and land adjacent to the project zoned for residential construction, IDBG signed an agreement to sell the assets to 3D Investments for a total price of $216 million.

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Property & Building holds 74.18% of IDBG, and IDB holds 25.82%.

Property & Building CEO Doron Cohen said, “We succeeded in selling the Tivoli project at a price and on terms beyond the expectations we held over the course of the process.”

Stages A and B of the Tivoli Village project consist of 62,000 square meters. The land sold in the deal carries rights to build 466 housing units.

Since 25.82% of IDBG is owned by IDB, a company in the hands of a court appointed trustee, the sale will be subject to court approval. If approval is not forthcoming, the sale will be annulled and the $10 million deposit returned to the buyer.

Property & Building says that it expects to post a gain of NIS 60 million on the deal. In the fourth quarter of 2021, the company will post a loss estimated at NIS 45 million relating to the decline in value of a loan extended to IDBG and its adjustment to fair value at the end of the year, partially offsetting the NIS 105 million gain from the deal itself.

Published by Globes, Israel business news – en.globes.co.il – on December 15, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.