Delek Global Real Estate has confirmed it has received notice that Swiss retailer Jelmoli will commence legal proceedings against it after it aborted the purchase of a CHF3.4bn (£1.4bn) property portfolio.
In an announcement made to the London Stock Exchange this morning, Delek said it had received a copy of ‘a notice which Jelmoli had submitted for the commencement of arbitration proceedings.’
Jelmoli will take legal action against Empario Holding, the company formed by Delek Global Real Estate, its parent company Delek Belron and property entrepreneur Igal Ahouvi’s Blenheim Properties Group, to buy the portfolio. DGRE owns a 33% stake in the Empario, while Delek Belron owns 17% and Ahouvi owns 50%.
The parties agreed a sale on 31 July however the bidders reversed their decision to buy the retail-led portfolio of properties across Switzerland on 25 October.