Gazit-Globe buys lot for Tel Aviv shopping center

Kokhav Hatzafon shopping center Photo: PR
Kokhav Hatzafon shopping center Photo: PR

The Israeli company has paid NIS 105 million for the lot in the Kochav Hatzafon neighborhood in north Tel Aviv.

Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT; TSX: GZT), controlled by founder and CEO Chaim Katzman, has bought a lot in the Kochav Hatzafon neighborhood in north Tel Aviv. Gazit-Globe is paying NIS 105 million for the 4.5-dunam (1.125-acre) lot at 19 Meir Ya'ari Street, on which a 2,500-square meter shopping center is being constructed, plus NIS 10 million in purchase tax. The company will build a neighborhood shopping center on the site under the G label, similar to G Tel Baruch (formerly the Mikado Center) and G Tzameret in the Park Tzameret neighborhood. The new center will include a parking floor and a commercial floor.

Gazit-Globe bought the lot from Thermosyntex Holdings, owned by Samuel Shteker, and Arie Parshkovsky Buildings. The two companies acquired the lot in 2012 for NIS 23.5 million after winning an auction by the Tel Aviv municipality for it. The building permit for constructing the shopping center was obtained in 2016, and the sellers began construction through installation contractor Rmat Construction and Engineering.

The deal also includes the cost of construction, while Gazit-Globe will continue construction and pay the installation contractor from the purchase price according to the pace of construction. Gazit-Globe is in effect buying a ready-made shopping center with signed rental contracts for 40% of the space; tenants include Shufersal Ltd. (TASE:SAE), which will establish a branch in the shopping center. Gazit-Globe will continue marketing of the space. Construction is slated for completion in two years. The shopping center will serve residents of the neighborhood, which currently has no commercial space; in recent years, this has forced residents to shop in Ramat Aviv.

Gazit Israel CEO Yaron Eshel said, "The purchase of the Kochav Hatzafon shopping center is part of the company's strategy, which focuses on development of urban shopping centers in the centers of high-rent residential neighborhoods with high entry barriers. This property is an addition to two other properties owned by the company, G Tzameret and G Tel Baruch, which jointly complete the high-rent properties portfolio in Tel Aviv."

Published by Globes [online], Israel Business News - www.globes-online.com - on February 20, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Kokhav Hatzafon shopping center Photo: PR
Kokhav Hatzafon shopping center Photo: PR
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