The Azrieli chain of shopping malls has fulfilled its growth potential in Israel, and reached the saturation point, Canit Hashalom Investments general director Menachem Einan told “Globes”, “unless we decide to buy out shopping malls experiencing difficulties because of the situation.”
The Azrieli group is considering setting up a discount shopping center in the central region, and is negotiating for another shopping mall in Rosh HaAyin.
Einan added that the group was looking for other fields of investment. Among other things, the group is negotiating major investments in water desalination and purification, and in electricity. Einan explained that these sectors were synergetic to the group’s construction and infrastructures business.
The Azrieli group includes Canit Hashalom Investments; the Azrieli center, including the shopping center and the three towers; International Consultants (IC), in which Leumi & Partners hold a 20% stake; and the Azritech Fund, which invests in high tech. As part of its entry into the infrastructures field, the group plans to establish a water purification subsidiary.
Einan also said that the company would allocate 25% of its management expenses next year for security, 50% more than in 2001. The group spent NIS 12 million on security this year. The advertising budget will be increased to NIS 7 million, mostly through the Zarmon-Goldman agency, compared with NIS 5 million last year.
Published by Globes [online] - www.globes.co.il - on December 24, 2002