After 16 years: Big nears the end of its US operations and is left with one property in the country

Big continues its divestment process in the US and has completed the sale of its holdings (80%) in the Legends at Sparks Marina shopping center in the city of Sparks, in the Reno metropolitan area in eastern Nevada, for approximately $82 million. The proceeds reflect a value of $103 million for the property, 8% higher than its value as recorded in the company's books as of the end of March. Its partner in the property, Migdal Insurance, which held the remaining 20%, also sold its share as part of the transaction.

Earlier this year, as part of the divestment process, the property company repaid a $50.5 million loan that Big had provided to it. The combination of the loan repayment and the transaction proceeds brings the cash flow expected for Big as a result of the deal to a total of $92.5 million, before payment of transaction costs and taxes. Big provided the buyer, the American investment fund Alturas Capital Partners, with a $75 million bridge loan for a period of six months, with an option to extend, until it is replaced by other financing.

The shopping center includes 39,000 square meters of retail space, which as of the end of the first quarter was leased at an occupancy rate of 96%. Big and Migdal acquired the stake in the property in August 2017 based on a value of $83 million.

Big began operating in the US in 2010 through its subsidiary Big USA, in partnership with Migdal, using a model of operating open-air shopping centers. Weakness in the US retail sector even before the pandemic, and the deepening slowdown in physical store sales following the pandemic, led the company to a decision made in November 2020 to exit the business and divest its assets. At that time, Big operated 25 shopping centers in the US.

In 2021 and 2022, the company carried out most of the divestments — nine properties in 2021 and 11 properties in 2022 — for a cumulative total of $568 million. In 2023 and 2024, Big completed two additional divestments for a total of $32 million, and last November it sold two more properties for $114 million. Following the current transaction, the company has only one property left in the US, a shopping center in Pennsylvania, which it also intends to sell.

In addition to the divestment in the US, Big sold its 50% stake in several logistics properties to its partner in France for 23.4 million euros (about 81 million shekels). Furthermore, the property companies are expected to repay by the end of 2027 an owner's loan of 20 million euros that Big had provided to them. After completing the sale of the last property in the US, Big will retain international operations in Poland, Montenegro, and Serbia, which the company defines as a growth engine and is working to expand.