• Delek reaps reward on Marriotts

Delek Real Estate, the company listed on London’s AIM with its roots in Israel, is set to reap a tidy profit on the sale of five Marriott hotels.

The assets, part of the 47 bought by Quinlan and a consortium of investors brought together by Igal Ahouvi, are to fetch £69m against the £36m they are in the books for following their acquisition in April this year.

The £33m profit is prior to costs and the share of profit that previous owner the Royal Bank of Scotland is entitled to. Delek’s share in the portfolio is 17%.

But Delek is itself getting cold feet on some deals. Earlier this month it, together with Igal Ahouvi, pulled out of the CHF3.4bn purchase of the retail property business of Jelmoli Holdings in Switzerland.

Subsequently, Jelmoli has gone on to take an 80% share in Seiler Hotels, the owner and operator of three upscale properties in Switzerland. It acquired a 36% holding in April 2005.

Meanwhile, Quinlan is beginning to attract critical press attention in the Republic of Ireland. The Irish Independent described the timing of Quinlan’s July Eu1.5bn purchase of the Citibank office tower in London’s Canary Wharf as “truly awful”.

Following the acquisition of Jurys Inns, which closed in July, Quinlan was, according to the newspaper, “taking a very long time” to raise Eu400m in equity to top up the bank loans on the Eu1.165bn deal.

The profit on the sale of the five non-core Marriotts from the portfolio of 47 should help placate investors. Quinlan has a near 50% in the portfolio.

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