British-Israel Investments Ltd. (TASE: BRTS), controlled by Leo Noe, has signed a conditional MOU to buy half the rights of MLA Hanegev Entrepreneurs and Developers Ltd., which owns a 62-dunam (15.5-acre) lot in Beersheva zoned for a mall and office project, for NIS 155 million. British-Israel is stepping into the shoes of Ofer Holdings Group unit Melisron Ltd. (TASE: MLSR), which had been in talks last month to become a partner in the project.
British-Israel owns 17 malls across Israel. MLA owner Eli Lahav preferred British Israel because the company's business better reflected the spirit of the planned mall. Lahav noted, however, that he appreciated Melisron and its parent company Ofer Brothers Properties Ltd.
The lot, located in the Neot Midbar compound in Beersheva, is valued at NIS 250 million. Closing of the deal depends on, among other things, approval by the Antitrust Authority and the parties reaching a marketing agreements.
The Beersheva Mall will be the largest mall in the Negev, with 40,000 square meters of commercial space, 1,800 parking spaces, and an 8,000-square meter amusement center. Construction of the mall is currently estimated at NIS 500 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 31, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010