A group of investors headed by Eli Israeli and Hanik Applebaum has finished letting 9,760 sq. m. in the "Sea Front" mall in the centre of Eilat, which was inaugurated last week. Two 140 sq. m. shops remain to be let. In most cases, rents were 5.5-8% of turnover. A minimum payment was also set, but in most cases this will not come into play. The main deals:
Shekem Gallery leased 1,000 sq. m. at 4.5-6.5% of turnover (the payment is on a sliding scale according to turnover level), or $22 per sq. m. per month from the fifth year. Shekem Electric leased 250 sq. m. at 2% of turnover value. Shekem is closing its old city centre store.
The Globus-Golan cinema chain leased 800 sq. m. at 10-12% of turnover.
The mall was set up by Ofek Properties, of which Israeli owns 50%, Antwerp diamond merchant Applebaum 45%, and Moshe Klein 5%. Arye Dagan, who formerly leased the land from the Israel Land Administration, and sold his rights to Ofek, will receive 50% of the profits, but will not be a partner in management. The investment totalled $42 million, of which $30 million came from Discount Bank in the form of a long term loan, and the rest was invested by Ofek’s owners.
Ariel-Miara Properties, owned by Haim Ariel and Menahem Miara (formerly manager of the Golden Mall in Rishon Letzion), has signed a contract to manage the mall for $12.5 per sq. m. per month.