The Haaretz-TheMarker Group is in advanced talks to sell the Hebrew newspaper's Tel Aviv headquarters to Sadeh Global Holdings Ltd. (SGH), which will convert the building into a high-end fashion mall.
As "Globes" was the first to report, the Haaretz Group decided to sell the property and move to other premises in Tel Aviv, for cost-cutting reasons.
The value of the deal is still under negotiation, but is around NIS 30 million. The parties aim to reach a memorandum of understanding this week. After an agreement is signed, vacating the building will reportedly take a year. The 6,300-square meter building on Schocken Street includes the printing house, and two and a half floors can be added to the structure.
"Haaretz" has been in financial difficulties lately, reflected in its wide-ranging cost-cutting plan, which includes the firing of scores of employees. The company is reviewing other options for saving the newspaper and improving its cash flow.
SGH, owned by Eyal and Eran Sadeh, plans to build the mall together with a US investment company. According to knowledgeable sources, there is already demand for 60% of the planned mall's space.
A top Psagot Investment House Ltd. executive introduced the parties in the merger deal.
The parties declined to respond to the report.
Published by Globes [online], Israel business news - www.globes-online.com - on December 9, 2012
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