The CEO who may end her term before serving a single day in the position
About a month and a half ago, the real estate company G City announced the appointment of Keren Khalifa as CEO, replacing Haim Katzman. However, the expected transfer of control and the plans of Tzahi Abu and Kidan Dahari to lead G City in a new direction raise questions regarding the realization of this appointment.
The expected change in the control structure of the real estate company G City may affect the appointment of the company's designated CEO, Keren Khalifa. In mid-June, G City reported to the stock exchange that the controlling shareholder, Haim Katzman, would step down as CEO at the end of next January, and Khalifa would be appointed in his place.
Khalifa was appointed CEO of G City's Israel real estate division in 2022, upon joining the company. Later, she served as COO, and in 2024, as Deputy CEO. She is considered a senior figure in the income-producing real estate sector. Previously, she served as Deputy Director of the Real Estate Assets Department at Harel Insurance, where she managed assets worth approximately 15 billion shekels.
Last week, the income-producing real estate company Ishpro-Tnuport, owned by Kidan Dahari and Yaron Adiv, joined Tzahi Abu's company, Ari Nadlan, in a deal to acquire control of G City. As part of the agreement, a partnership established by Ari Nadlan and Ishpro (in equal parts) will purchase 26% of G City shares from Katzman's Norstar for 661 million shekels, with an option to increase their stake to 33% (while Norstar's stake will be diluted to 21% from approximately 54% today). The partnership will have the right to appoint a majority of the directors of G City, including the Chairman of the Board.
"Hands on the assets"
In many cases, a change of control in a public company leads to the appointment of a CEO on behalf of the buyers, and in the case of G City, Abu and Dahari have plans to shake up the company. Last week, Dahari declared his intention to focus the company on its business in Israel and reduce its high leverage.
"For many years, G City focused on financial moves and organizational structures; we want to return it to being a leading real estate company, which is what we know how to do best, without too many complications. From the moment we take the reins, we will dramatically reduce expenses and leverage. We also want to stabilize the company in terms of management, where both I and Tzahi will manage the company on an ongoing basis, and we will be 'hands on' the assets. And of course, in parallel, sell assets abroad," Dahari stated.
G City, which engages in the acquisition, development, and management of income-producing real estate, with an emphasis on shopping centers, holds 85 properties worldwide, spread across Israel, Poland, Scandinavia, the USA, Canada, and Brazil. The company is traded at a market value of 2.3 billion shekels after a jump of over 60% since the beginning of the year.
"We are going to turn G City into a real estate empire and return it to its natural place," declared Dahari in a conversation with Globes. "I have already proven that I have experience in dealing with large companies, rehabilitating them, and bringing them to the forefront. Now is the time to return G City to its great days. Together with Tzahi, my friend and partner, from the moment we take the reins, we will race forward."
No response was received from G City regarding these remarks.
