Vitania in Advanced Talks to Buy Delek Automotive Stake in Tel Aviv Project
Vitania is negotiating to acquire Delek Automotive's stake in a major Tel Aviv project for over half a billion shekels. The move requires capital raising, while Delek seeks funds to finance its bid for credit card company CAL.
Vitania, controlled by Rami Ungar, is holding advanced negotiations to acquire Delek Automotive's 50 percent stake in two buildings within the La Guardia project in Tel Aviv. Vitania holds the remaining 50 percent and possesses a right of first refusal on Delek Automotive's shares. Delek Automotive previously received an offer of 562.5 million shekels from Tsachi Abo's Ary Real Estate, valuing the stake at 1.13 billion shekels. Market estimates indicate that Vitania, which reported a cash balance of just 9 million shekels at the end of the second quarter, will need to raise capital to finance the transaction. If executed through a rights issue, Ungar is expected to inject his share to maintain his 64 percent stake in the company.
The La Guardia project, marketed as Vitania Tel Aviv, spans three mixed-use towers featuring 125,000 square meters of office space, 10,000 square meters of commercial areas, and 130 residential units. Tenants include gaming company Moon Active, Gornitzky law firm, and Bank Hapoalim, which acquired an entire tower in 2021 for 970 million shekels. Delek Automotive holds its stake through its subsidiary, Delek Motors. Rami Ungar, widely known for his shipping fleet and Kia automotive imports through Talcar, has steadily increased his holdings in Vitania since 2022.
Delek Automotive is seeking liquidity from the sale to finance its potential acquisition of credit card company CAL from Israel Discount Bank and First International Bank. Delek Automotive aims to acquire a controlling stake in CAL, stepping into a process previously pursued by George Horesh and Harel Insurance before antitrust regulatory hurdles halted that transaction. Meanwhile, Vitania is also looking to buy out its partner's 50 percent stake in a Rehovot science park project, further underscoring the company's capital-raising requirements amid its broader real estate expansion.
