Amot Investments will acquire 50% of Ariel Properties for $2.5-3.5 million, at a value of $5-7 million, “Globes” has learned from sources close to the negotiations between the parties. The sources said that the agreement may be signed in the next few days. At the moment, the parties are still negotiating the price. Amot is offering $2.5 million, while Ariel is asking for $3.5 million.
”Globes” has learned that Ariel’s revenues amounted to about NIS 300 million last year, reflecting a 15% profit. 87% of revenues are designated for covering maintenance expenses, while 13%, amounting to NIS 40 million, is profit, excluding current expenses. The company also has undisclosed revenues from managing Israel Land Authority (ILA) properties in Jaffa and from rent on apartments.
Ariel, owned by Haim Ariel, is Israel’s largest real estate management company, running about 70 office buildings on an overall area of two million sq.m., as well as other properties.
Ariel recently signed a contract with Delek Real Estate to manage the Sirkin shopping mall in Petah Tikva, which has 10,000 sq.m. of income-yielding space. Ariel also concluded a deal to manage the luxury Savyonei Ramat Aviv neighborhood, owned by Africa-Israel and Lumir as well as a deal to manage a 280-apartment residential neighborhood being constructed by contractor Shimon Strod in Ra’anana.
Ariel Properties Trustees represents about 200 mostly South American foreign investors in their private investments in Israel, principally in deals involving apartments.
Published by Israel's Business Arena on March 11, 2001