Electra Real Estate will pay $4.15 million in cash and the rest later, depending on Ariel Properties' performance through 2007.
Electra Real Estate signed an agreement yesterday to fully acquire Ariel Properties from Haim Ariel and his wife Nurit for $6.9 million. Electra will pay $4.15 million in cash and the rest later, depending on Ariel Properties' performance. "Globes" first reported about the pending deal three months ago.
Among other things, the agreement stipulates that Haim Ariel will continue advise and supervise Ariel Properties for the next three years. During this period, he may not found another property management company or compete with Ariel Properties in any way whatsoever. Ariel Properties' staff will stay on, under CEO Uri Unger.
Toward the end of 2007, the parties will examine Ariel Properties' business results, which will determine whether Electra will pay all or part of the $2.75 million balance for the company, on the basis of a profitability chart stipulated in the agreement.
Ariel Properties is the largest property management company in Israel, managing two million sq.m. of office, commercial and other properties.
Published by Globes [online] - www.globes.co.il - on August 9, 2004