Real estate developer Azrieli Group agreed to sell Israeli paint company Tambour Ltd to Singapore-based holding company Kusto Group for 500 million shekels ($144 million).

The buyer made a payment of 70 million shekels upon the signing of the deal, Azrieli, which focuses on operating shopping malls, said in a statement.

The company, which is controlled by Canadian businessman David Azrieli, said it expects to post an after-tax gain of 50 million shekels from the sale.

Azrieli said the sale of Tambour is in line with the company's strategy of focusing on its core activities of income-producing real estate and selling non-related businesses.

Israeli media reported in March that private equity firm Apax Partners was in talks to buy Tambour, which Azrieli controls through its subsidiary Granite HaCarmel, for 300 million shekels.

Apax last week struck a deal to sell its 56 percent stake in Tnuva, Israel's largest food company, to China's Bright Food Group.