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Delek Real Estate managing director Ilik (Hillel) Rozanski recently received an offer to acquire most of the Reichman family holdings in Canada. The deal is valued at $1 billion.

Rozanski is exploring the deal's economic feasibility, but still has not decided whether to submit a bid to the Reichmans' O&Y Properties. "Indeed we received documents relating to the deal with the Reichmans," Rozanski said. "We are inspecting the properties, and we will decide if and when to proceed in the matter."

Philip Reichman handles most of the family's Canadian assets through O&Y Properties, including Canada's tallest office building, the 72-story First Canadian Place. The company also holds 42 percent of a real estate investment trust (REIT), which owns 23 office buildings across Canada, including Toronto, Edmonton and Calgary.

The properties for sale cover 700,000 square meters. According to Canadian law, the buyer of a controlling stake would have to acquire all remaining shares in the fund from the investors and the public.

O&Y shares trade on the Toronto exchange at a value of $400 million, but the attractiveness of the properties and the need to buy out the remaining holdings in the REIT fund, drive the deal's value up toward $1 billion.

Delek Real Estate, whose parent company Delek Group is controlled by Yitzhak Tshuva, currently owns 19 income-generating properties in England and another four in Canada. The company has lately invested in income-generating properties in Sweden and Germany, bringing its total holdings in this area to $2.5 billion. Delek Real Estate bought total ownership of Dankner Investments from the Dankner family last year.