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Shares in Gazit Globe (TASE: GLOB)  are rising strongly on rumors that the Israeli company is on a shortlist to buy a Canadian real estate investment trust.

The REIT in question is called Legacy Hotels. According to the Financial Times, relying on a source in banking (who has nothing to do with the deal), there's an Israeli fund in the offing, and the sourcethinks it's Chain Katzman's Gazit group.

The Canadian REIT in question has 24 assets, including several Fairmont Hotels Properties.

Other contenders are the Canadian pension fund Westmont Hospitality Group and Homer's.

Shares in Gazit Globe are rising 4.75% on heavy turnover of NIS 13 million on the Tel Aviv Stock Exchange on Sunday morning. 

This year Gazit Globe has lost about 13% of its value while the benchmark index, the TA-25 index, has risen 24%.