The consortium of Gindi Investments 1 Ltd. (TASE: GIND.B1), Moshe and Igal Gindi Ltd and Blue Square Real Estate Ltd. (TASE: BLSR), which lost the Tel Aviv wholesale market tender, has opened no-shop exclusive negotiations with the sellers, after the sellers last week announced that it failed to reach a deal the tender winner - the Soho consortium. The no-shop exclusivity negotiations will continue through February 24.
The Soho consortium comprises Shari Arison-controlled Shikun u'Binui Holdings Ltd. (TASE: SKBN), Shaul Elovitch-controlled Eurocom Global Real Estate Ltd. (TASE: EGRE), Aviv & Co., and Canada-Israel Development Corporation. The consortium had a 14-day no shop, which was extended with no deal reached with the wholesale market sellers. Tnuva Food Industries Ltd. owns 60% of the wholesale market, the Tel Aviv-Jaffa Municipality owns 25%, Adv. Shraga Biran owns 6%, and former traders in the market own the rest.
Gindi Investments and its partners are in talks for the first stage of the Tel Aviv wholesale market project - Lot 6 zoned 15,000 square meters of mixed residential and commercial use, including 600 apartments. The second stage of the project - four residential high-rises - will probably be marketed at a later date.
Gindi Investments and its partners offered NIS 1.05 billion in the tender, in cash and with clear installments, together with an upside.
Gindi Investments' notice to the TASE, "There is no certainty at this time that of progress in the negotiations, the structure of a deal, its proceeds, including financing, the amount of space offered for sale to the group, or the distribution between the group's parties" is not mere boilerplate. The sale of the Tel Aviv wholesale market has not been smooth.
The first tender in September 2008 was cancelled, the closing of the second tender was frequently postponed, bidders withdrew, and then the no-shop exclusivity negotiations with the tender winner was twice extended with no deal reached.
The Tel Aviv wholesale market sellers hope to continue talks with the Soho consortium, despite the expiry of the no-shop exclusivity negotiations, but Soho is no longer interested.
Published by Globes [online], Israel business news - www.globes-online.com - on February 22, 2010
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