The owners of the Tel Aviv wholesale market lot have reached an understanding with the Gindi Investments 1 Ltd. (TASE: GIND.B1), Moshe and Igal Gindi Ltd., and Blue Square Real Estate Ltd. (TASE: BLSR) consortium after all-night talks, although no deal has been signed. The exclusive no-shop negotiations will likely continue for another week.
The parties have closed most details, but they are still waiting for approval by the boards of directors of the companies involved. Sources believe that an agreement will be signed by Sunday.
Sources close to the talks said that the consortium is offering NIS 950 million, plus an upside component, for the first stage of the wholesale market project - Lot 6, zoned for 15,000 square meters of mixed residential and commercial use, including 600 apartments.
In a notice to the Tel Aviv Stock Exchange (TASE) this morning, Gindi Investments said that it wished to clarify media reports, and that it could not assess at this time the likelihood that a purchase agreement for the wholesale market would be reached.
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. The sellers could not close a deal with the original winners of the tender, the Soho consortium of Shari Arison-controlled Shikun u'Binui Holdings Ltd. (TASE: SKBN), Shaul Elovitch-controlled Eurocom Global Real Estate Ltd. (TASE: EGRE), & Co., and Canada-Israel Development Corporation.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2010
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