Ari Real Estate Agrees to Acquire Beersheba Industrial Complex for 110M NIS
Ari Real Estate, controlled by Tzahi Abu, agreed to acquire a 407-dunam industrial complex in Beersheba from Adama and Lycored for 110 million NIS. The contaminated site, previously marketed for 300 million NIS, will generate 7.7 million NIS in annual rent.
Ari Real Estate, controlled by businessman Tzahi Abu, has signed a memorandum of understanding to acquire rights to a 407-dunam industrial complex in Beersheba for 110 million NIS. The sellers are Makhteshim Agan Industries (Adama Agricultural Solutions) and Lycored. The site currently hosts the two companies' manufacturing plants: Adama's facility, which handles formulation and packaging of agricultural pesticides—with about 90% of its operations already relocated to Neot Hovav—and Lycored's facility, which produces ingredients for the food and health industries.
The transaction price is significantly lower than the valuation Adama previously sought. For several years, the company tried to sell the complex, asking around 300 million NIS in 2023 from prospective buyers in the logistics and income-producing real estate market. However, the site is classified as contaminated land, a critical factor in the deal. While the detailed agreement is expected to outline remediation procedures, specifics regarding the required cleanup scope, costs, and liability distribution between the parties have not yet been disclosed.
Lease Agreements and Rental Income
Simultaneously with the land acquisition, Ari Real Estate intends to sign lease agreements with both companies. Lycored will lease its plant area for five years, with two options to extend for an additional five years each. Adama will lease its facility for two years, with an option to extend for an additional year, alongside an early termination clause for part of the space after the first year.
Combined annual rental income from both companies will total 7.7 million NIS. Ari Real Estate has not yet disclosed its long-term plans for the complex following the transaction's completion.
Adama Financial Results
Meanwhile, Adama reported its financial results, showing third-quarter 2026 sales of 897 million dollars, a 4% decrease compared to the same period last year. Adjusted EBITDA dropped 22% to 93 million dollars, and the reported net loss deepened to 115 million dollars, compared to a net loss of 48 million dollars in the parallel quarter.
For the first nine months of the year, Adama's sales reached approximately 3 billion dollars, marking a 1% decline, while the reported net loss stood at 53 million dollars, compared to 59 million dollars in the corresponding period last year. The company attributed the weak financial performance to pricing pressures in the agrochemical market and extreme weather conditions in Europe that impacted sales.
