The Africa Israel group is negotiating with Elrov to purchase the Canyon Hasharon Mall in Netanya, together with the adjacent protected tenants housing. The volume of the deal is estimated at $100-110 million. Elrov put the property up for sale as part of its policy of selling most of its real estate in Israel.
The shopping mall has 20,000 sq.m. of income-yielding space, with an estimated value of $80-90 million, according to a 8.75% yield. The adjacent protected tenants housing has 8,000 sq.m., and its estimated value is $20 million, according to yield from deposits from current business.
If Africa Israel acquires the mall, it will thereby expand its array of shopping malls in the central region. Africa Israel already holds the Ramat Aviv and Or Yehuda malls. The company has been examining the possibility of expanding its activities in the shopping mall field for a long time.
At the same time, Elrov is also negotiating the sale of the mall and the protected tenants housing with other parties, including Amot Investments, the Reichman brothers, and various groups of shopping mall owners in various locations.
Published by Israel's Business Arena on July 3, 2000