Delek Global Real Estate said that it had received notice that it was being sued after it pulled out of a £1.5bn deal to buy a portfolio of department stores from Swiss retailer Jelmoli.
Delek and a consortium of Blenheim Properties and Delek Belron International announced, in October 2007, that it was withdrawing from the purchase of Jelmoli’s 86 department stores, citing uncertainty in the global commercial property market.
In a statement last month, Jelmoli said that it would sue the Aim-listed group for the payment of the entire headline price plus interest due under the purchase agreement.
It added: “The purchaser consortium’s withdrawal from the contract is without basis in the purchase agreement and is a blatant breach of contract. The purchasers’ refusal to close marks an event of abuse that is unheard of in
In a stock market announcement this morning Delek said that it had received a copy of a notice of arbitration proceedings on 31 December 2007.
Delek said that it had transferred the notice for the “review and further treatment of its Suisse lawyers”.
