5 offers to buy Gazit-Globe's Israel holdings

Chaim Katzman Dori Segal

Israeli observability co groundcover raises $35m

Both foreign and domestic groups have filed bids for the firm’s real estate properties, which are worth NIS 1 billion.

The sale of the real-estate operations in Israel of Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT; TSX: GZT) began over the weekend, with several offers submitted by both domestic and foreign groups. Gazit Israel has equity of some NIS 1 billion, with its holdings comprising mainly the “G” chain of malls.

Amot Investments Ltd. (TASE:AMOT) Investments, part of Alony Hetz Property and Investments Ltd. (TASE: ALHE) announced Thursday that it submitted a nonbinding offer under a tender released by Gazit Israel. It is believed that the offer was jointly filed with Gindi Investments.

Big Shopping Centers (2004) Ltd. (TASE:BIG) and Mega Or Investments said Sunday morning that they had also submitted a joint bid to the company, in cooperation with two institutional bodies, likely Psagot Investment House Ltd. and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL).

Gazit-Globe has also received several offers from private firms, including an offer from JTLV - led by Amir Biram - which partnered with Menora Insurance, Clal Insurance, and the Amitim pension fund. Two international funds also lodged nonbinding bids.

The tender published by Gazit-Globe, controlled by Chaim Katzman and Dori Segal, permitted bidding throughout the week, and analysts believe two additional foreign groups will try to submit their offers in the coming days, as well as a few domestic actors. By the end of the bidding period, some 10 offers are expected, out of which two or three will be asked to submit additional information.

The deadline for binding bids will likely be set for October. According to previous reports, Gazit Israel’s operations in commercial centers in the country are valued at NIS 1 billion, similar to its equity capital. The total value of its assets in Israel is estimated at NIS 3.5 billion.

The profitable part of the firm includes 10 commercial centers and six development projects across the country, under the “G” brand - a total of nearly 280,000 sq. m. The company also holds five properties for development in Bulgaria and Macedonia.