Delek Real Estate is considering setting up a London Stock Exchange-listed REIT consisting of a UK-wide portfolio of 130 properties, most of which are car parks.
Delek is one of the property businesses owned by Israeli billionaire Yitzhak Tshuva.
Reports in Israel said the company is in discussions with bondholders over the idea, which is part of an ongoing strategy to pay down £345m of securitised debt.
The REIT’s key asset would be 59% of Delek Global Real Estate (DGRE). Delek Real Estate holds 81.5% in a subsidiary, Delek Belron International, which recently delisted DGRE after a takeover of the company.
Delek Real Estate chief executive Ilik Rozanski told the Israeli media: “As the company has stated in the past, we are examining creative ideas that will provide bondholders with a solution and security.
“The ideas are being examined by professionals and are subject to all the taxation, legal and economic tests, plus the approval of banks in Israel and abroad.”
DGRE owns car parks leased to national parking lot chain NCP. The company’s portfolio is estimated to be worth £400m, valuing the properties to be placed into the REIT at more than £200m.
Delek will need to reduce its stake in the new REIT in accordance with UK regulations. It is believed some of its holdings will be handed over to institutional investors holding Delek bonds in return for the debt being waived.
The company would not comment on the reports, but told EG: “If and when any information relevant and appropriate for release is available, announcements will be made.”
