Gazit-Globe Ltd. (TASE: GLOB) subsidiary Gazit-Globe Israel Ltd. today inaugurated the first stage of its G Kfar Saba project, which cost NIS 360 million to build. The company predicts NIS 62 million in revenue and a net operating income of NIS 53 million a year.
At the inaugural press conference, Gazit-Globe Israel CEO Ronen Ashkenazi said, "I don’t think we'll cause any great shock to shopping centers in this area, but more money and shopping power of the Sharon will be kept in the Sharon."
G Kfar Saba is a mixed shopping center and indoor mall. The second stage of the mall is due to open in May, and the third stage in December. The mall was built around an innovative concept in Israel. Ashkenazi noted, "The idea was to do something that we've already done in some places around the world, which is a one-stop-shop. This is a place with a lot of parking and 135 tenants who can offer potential buyers the entire shopping chain.
Commenting on the economic crisis, Ashkenazi said, "It is a great challenge to open a shopping center in these times. All the tenants opened shop even though most of them reduced their opening budgets. We targeted correctly. We didn’t target too high or too low. The times are unquestionably challenging and the fact that the shopping center has opened is the best proof that we've done everything right and with very few mistakes."
Ashkenazi said that Gazit-Globe Israel is ready for the pending entry of Gap Inc. (NYSE: GPS) of the US and Swedish fashion chain H&M AB (OMX: HMB) into Israel, and has prepared 1,000 square meters for them on the mall's second floor. "Both chains have visited here, but neither has made a decision yet," he said.
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2009
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