The transaction is contingent on the approval of Bank Hapoalim. Electra Real Estate: We may exercise our first refusal rights.
The Gmul and Mivtahim pension funds are separately negotiating to buy Yosef Moshkovitz's 50% stake in the Ayalon Business Center, near Yad Eliahu in Tel Aviv. Moshkovitz's trustee is asking for $60 million, which constitutes the basis for the negotiations. Negotiations are also underway with several private companies on similar terms.
Electra Real Estate, which owns the other half of the business and commercial project, has the right of first refusal for Moshkovitz's stake, and the right is valid for 30 days from the conclusion of a deal with a third party. The company's management told "Globes", "If and when there's a draft contract with a third party, we will study the proposal. If we conclude the deal is economically feasible, we'll exercise our right of first refusal and buy the other 50%."
The transaction is also contingent upon the approval of Bank Hapoalim, Moshkovitz's main creditor, which will receive the proceeds from the sale. The bank recently sold several of Moshkovitz's properties in the Haifa area. The balance of his debt to the bank is NIS 260 million, and Bank Hapoalim will approve the sale if it contributes to the liquidation of the debt.
Published by Israel's Business Arena on 9 September 2001