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Further details have emerged about an ongoing acquisition deal between investors and prominent Canadian developer, Elad Canada.

Today, Elad Canada released a statement outlining the recent signing of a non-binding letter of intent between Elad Group, the Canadian subsidiary’s controlling shareholder, and real estate companies Plaza Partners and Argent Ventures who are moving to acquire Elad Canada.

“We are very pleased with this opportunity as Elad Canada continues to solidify its operations, including investment in income-producing properties and developing master-planned communities in Canada,” said Rafael Lazer, CEO of Elad Canada, in the press release.

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“The transaction process is progressing well, and we look forward to working with the experienced groups at Plaza Partners and Argent Ventures,” he added.

According to the press release, phase one of the transaction, which includes 37 percent of Elad Canada’s shares and 100 percent of US properties, San Michelle and Colonnade at Sawgrass, will be sold for approximately $225 million.

The parties expect to sign a binding agreement within 30 days. The agreement will provide the option for investors to acquire the remaining 63 percent of Elad Canada’s shares no later than 30 months after signing. Additionally, Elad Group will have the option to force the acquisition of the remaining 63 percent in several tranches 18 months after signing.

The total value of all phases of the transaction is pegged at $608 million.

When the first phase of the transaction is finished, the statement confirms that the buyers will direct the majority of day-to-day management. Senior management and key personnel will be retained at Elad Canada, according to the release.

Elad Canada is behind some of Toronto’s most prominent condominium projects, including Galleria on the Park, Lansing Square and Emerald City.

Elad Group is an Israel-based real estate company owned by Israeli billionaire Yitzhak Tshuva.

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