G City stock slashed by over 20%: "There is currently no economic feasibility for realizing assets in Brazil"
G City's stock has been cut by approximately 22% since the elections in Brazil, amid investor concerns over its high exposure to shopping malls in Brazil. A capital market source said that realizing assets in Brazil is not economically feasible due to the high yields on government bonds in the country.
The stock of income-producing real estate company G City has been cut by approximately 22% since the elections in Brazil, erasing over 400 million shekels from its market value. The company, managed and controlled by Haim Katzman, is significantly exposed to the Brazilian economy, with seven income-producing assets worth 1.8 billion shekels. The Brazilian real has plunged about 10% against the dollar, and the Ibovespa index has fallen by about 18%. A capital market source said that realizing assets in Brazil is not economically feasible, as Brazilian ten-year government bonds offer an annual yield of 15.4%, making it difficult to sell assets at desired prices. The company is in an asset realization process due to large debts, and in August announced a plan to sell assets worth 6.1 billion shekels, including its assets in Brazil. The stock is trading at about one-third of the company's equity, which stood at 4.1 billion shekels.