The mystery surrounding the breakdown of the sale of the Assuta compound in Ramat Hehayal to Amot Investments Ltd. (TASE:AMOT and Migdal Insurance (TASE: MGDL) has been solved after more than a week of speculation. Maccabi Health Services, the controlling shareholder in the privately-held Assuta hospital chain, decided to acquire the main building in the Ramat Aviv compound from Ocif Investments and Development (TASE: OCIF), controlled by Aracadi Gaydamak.
The Maccabi board was due to meet yesterday to approve the deal, which is estimated at just over NIS 800 million - NIS 600 million less than the amount Migdal and Amot were understood to have agreed to pay in the preliminary agreement signed at the end of July.
The gap between the sums is due to the fact that Maccabi will initially acquire only the main building, which houses the Assuta hospital, without the surrounding commercial space. Ocif and Gaydamak will be now hoping to find a buyer who will be willing to acquire the remaining space at a similar price to that offered by Migdal and Amot, given that the financial crisis is also likely to take its toll on the income producing real estate sector.
The motive for Maccabi's lightning snatch of the site from under the noses of Ocif, Amot and Migdal, lies in the original leasing agreement it signed with Ocif. Maccabi agreed to lease 60% of the space on the compound from Ocif for 25 years, and was given first refusal rights in the event of a sale - provided it made a counter-offer at the market price.
Published by Globes [online], Israel business news - www.globes-online.com - on September 25, 2008
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