British real estate investor Leo Noe, who controls Europe’s REIT Asset Management property group, has bought Azorim Properties from the Ganden group for NIS 400 million. The deal was signed following rapid negotiations in which Ganden originally asked for NIS 450 million.
REIT, with assets of $3 billion, is considered one of the top five real estate firms in Western Europe, with investments in England and other countries. Noe has experience with real estate deals in Israel, and is a strong supporter of the country.
Leo Noe said today, “After completing the Azorim Properties deal, the REIT group plans to expand its investments in Israel’s real estate market.”
Azorim Properties’ activities in Israel will be managed from now on through REIT Israel, an investment fund established at the start of this year with $50 million in shareholders’ equity. REIT Israel is owned by REIT Asset Management UK and by other shareholders, including Amir Biram, CEO of REIT Israel, and Excellence Investments.
The sale of Azorim Properties will help the Ganden group to repay its banks a large part of the loan it received a few months ago to finance the acquisition of IDB Holdings.
Nochi Dankner, who controls Ganden, acquired control of Azorim Properties from Azorim two years ago, and later had the company delisted from the Tel Aviv Stock Exchange. Dankner bought the company at a $100 million company value.
Most of Azorim Properties’ current activity is in development projects for office, commercial, and industrial space for rent. The company manages 400,00 sq.m. of income-producing properties, with an additional 180,000 sq.m. in the planning, development, and construction stages.
Through its Mishkenot Clal subsidiary, Azorim Properties is also active in developing constructing, and managing housing for senior citizens. The company also owns managing companies for office, commercial, and hotel apartment buildings.
Published by Globes [online] - www.globes.co.il - on 23 October, 2003