Delek Real Estate in talks to sell Israel unit

JERUSALEM, Oct 28 (Reuters) - Israel's Delek Real Estate Ltd (DLKR.TA) said on Sunday it is in talks with Netherlands-based investment group Kardan NV (KRNV.TA) (KARD.AS) to sell or merge its residential activity in Israel.

According to the negotiations, Delek unit Dankner Investments, which covers most of Delek's residential activity in Israel, would be sold to or merged with Kardan's real estate unit, Delek said in a statement to the Tel Aviv Stock Exchange.

The conditions of the deal have not yet been decided and there is no certainty the negotiations will lead to an agreement, Delek said.

Delek's shares were up 3.6 percent at 26.44 shekels and Kardan's shares were up 2.2 percent at 73.90 shekels in morning trade in Tel Aviv.

Conglomerate Delek Group (DELKG.TA), which has holdings in the energy, automotive, and real estate sectors, owns 90.5 percent of Delek Real Estate.