Delek Global Real Estate said 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 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 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 it had received a copy of a notice of arbitration proceedings on 31 December.
Delek said it had transferred the notice for the “review and further treatment of its Suisse lawyers”.
