Tzachi Abu's Ari Real Estate Moves to Take Full Control of Ashdod Commercial Complex
Ari Real Estate, controlled by Tzachi Abu, moves to secure full control of a massive commercial complex in Ashdod through an option to buy out Iron Real Estate's stake for 137 million shekels.
Israeli businessman Tzachi Abu is further expanding his foothold in his hometown, as Ari Real Estate Investments, controlled by Abu with a 51.3% stake, announced a major move to increase its control over a large, sought-after commercial and employment complex in Ashdod.
The transaction is being carried out through its subsidiary, SLS Mifratim Ltd. The company signed a marketable option agreement with Iron Real Estate Ltd. to acquire Iron's entire holdings in Mchazikey Ashdod Ltd. This follows news that Gefen Residential, also under Abu's control, signed an agreement to acquire about half of the controlling stake in Y-Box Real Estate for roughly 76 million shekels. As part of that deal, former Shikun & Binui CEO Tamir Cohen will join by acquiring 5.4% of Gefen's share.
Mchazikey Ashdod holds 72% of the share capital of Peninat Ashdod (2005) Ltd., which holds development rights over a massive area of approximately 110 dunams near the Ashdod railway terminal. The complex includes building rights for about 180,000 square meters designated for commercial use.
Upon completion of the transaction terms and exercise of the option, SLS Mifratim's holding in Mchazikey Ashdod will surge to 95.84% of the issued and paid-up share capital, granting it absolute 100% control of the management shares in the company.
At signing, SLS Mifratim paid Iron Real Estate 4.7 million shekels plus VAT as an option fee. The company has a 60-day window to exercise the option from the signing date, until November 10. The total consideration for the purchase was set at 137 million shekels, payable upon the actual completion of the deal.
