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IDB firms write down value of Las Vegas property

Thu Feb 19, 2009 5:29am EST

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JERUSALEM, Feb 19 (Reuters) - Israeli conglomerate IDB Development IDBD.TA and two of its constituent companies said they are writing down the value of their stakes in a site for a proposed multi-billion dollar Las Vegas Strip project.

IDB unit Property and Building Corp (PTBL.TA) said on Thursday it will write down about 200 million shekels ($48 million) in the fourth quarter due to a drop in the value of the site.

IDB Development itself said it would write down 324 million shekels as a result of a decline in the value of the property, and unit Discount Investment Corp (DISI.TA) will write off of 167 million shekels.

Property and Building and IDB Development own IDB Group USA Investments Inc, which together with the Elad Group jointly owns Elad IDB Las Vegas -- the group planning to build a Plaza Hotel in Vegas.

Last month, Elad reached an agreement in principle to extend a $625 million loan it took to purchase the site.

Property noted that negotiations to extend the loan would continue through March 9.

($1 = 4.13 shekels)

(Reporting by Steven Scheer and Tova Cohen; Editing by Hans Peters)

((steven.scheer@reuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.reuters.com@reuters.net)) Keywords: IDB/PROPERTY VEGAS

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