Electra Real Estate has agreed to acquire Ariel Properties from its owners, CEO Haim Ariel and his wife Nurit, for $6.3 million. The final price will depend on Ariel Properties' results for 2004.
Under the deal, Haim Ariel undertook to continue managing the company for several years as a paid executive, and not to found a competing company.
Ariel Properties is Israel's largest property management company, managing two million sq.m. of office buildings, commercial centers, malls, industrial buildings, and residential buildings. In the past, it managed properties for the JNF Land Development Authority and the Israel Land Administration for five years.
Owned by Elco Holdings (TASE:ELCO), Electra Real Estate fully or partly owns office buildings in Tel Aviv and Haifa, and has made a series of real estate investments in Europe, mostly in the UK.
Haim Ariel was unavailable for comment. Electra Real Estate stated that it would shortly issue a formal statement on the matter.
Published by Globes [online] - www.globes.co.il - on May 3, 2004