The company has let shops at $20-27 per month. Part of the profit belongs to the kibbutzim.
The Alon fuel company has reached a return of 30-31% on its investments, including real estate, in a number of projects. This is indicated by internal data reaching "Globes". The company has let thousands of square metres of commercial areas, adjacent to its fuel stations in various locations countrywide. The company is planning to raise NIS 50 million shortly by issuing 15% of its shares, together with convertible debentures. It will be emphasised that part of the profit is due to the partner kibbutzim, as detailed below.
Alon runs 26 fuel stations with adjacent commercial centres, and has another ten stations and centres under construction. Sources close to the company elected to present data on projects that do not necessarily reflect the profitability of the company’s other projects:
- Ein Shemer: Alon invested NIS 13.72 million in the construction of a fuel station and 3,500 sq.m. of commercial space, including land and development. The Alonit supermarket, an equal partnership arrangement between Alon and the kibbutz, rents 1,400 sq.m., and monthly profit from it amounts to NIS 147,000. Of that amount, half belongs to the kibbutz. Pancake House rents 550 sq.m. at $20 per sq.m. per month. Hamashbir Agencies rents 220 sq.m. at $11 per month. Michelin rents 75 sq.m. at $23 per sq.m. per month. Total revenues from retail outlets amounts to NIS 101,000 per month. There are also revenues from the fuel stations. Profit net of various expenses amounts to NIS 4.11 million, giving a 30% return.
- Mishmar Hasharon: the company invested NIS 10.55 million, including the construction of 1,000 sq.m. of commercial areas. Super Alonit rents 450 sq.m. and the profit amounts to NIS 108,000 per month. Burger Ranch rents 250 sq.m. at $26 per sq.m. per month. The Segafreddo coffee shop chain rents 100 sq.m. at $22 per sq.m. per month. Michelin rents 65 sq.m. at $25 per sq.m. per month and there are others. Revenues from the shops amount to NIS 50,000 per month. Net profit, after adding the earnings of the fuel stations and subtracting expenses, comes to NIS 3.26 million, a 30.9% return.
- Einat - project under construction: the investment will reach NIS 8.35 million, including 1,300 sq.m. of commercial areas. Anticipated profit from Super Alonit comes to NIS 85,000 per month, and expected rent (all areas already having been let) is NIS 63,000 per month. Anticipated profit comes to NIS 2.6 million, a 31.2% return.
David Weissman, one of the owners of Alon, says the high profit is due to the fact that the kibbutz land was obtained at low cost, and no investment was made in the construction of underground parking. Weissman and Adv. Shraga Biran own 37% of Alon, the kibbutz movements 37% and Africa Israel 26%.