Amot buys full ownership of Kiryat Ono mall

Avi Mosler

Amot, which already owned 50% of the mall, is buying the other 50% from Property & Building for NIS 545 million.

Israeli income producing real estate company  Amot Investments Ltd. (TASE:AMOT) announced today that it would acquire all of Property and Building Ltd. (TASE: PTBL) holdings in the Kiryat Ono shopping mall for NIS 545 million. The deal will give Amot full ownership of the mall.

The center contains a shopping mall with 23,000 square meters and two office towers above it with a total of 19,000 square meters over a covered parking lot with 70,000 square meters and 1,480 parking spaces.

The commercial space is leased to a wide variety of tenants in the fashion, leisure, and food industries, including anchor stores. The office space is leased to health funds (Maccabi Health Services, Clalit Health Services, and Kupat Holim Meuhedet), private doctors' clinics, Ono Academic College, and a range of other self-employed professionals.

The occupancy rate in the complex is stable at 96%. Amot estimates the property's net operating income (NOI) when fully occupied at NIS 68 million a year.

Amot also reported yesterday that it had successfully completed the investment institutions stage of its issue of its eight-year Series F bonds, raising NIS 600 million in the process at 0.92% interest.

"I am delighted at the increase in our share of the Kiryat Ono mall, a strong property with stable demand and a high occupancy rate. The property is leased to topnotch tenants with good turnovers. We have been managing this property for over a decade, and are familiar with its advantages and opportunities. We see the property's potential continuing, given its central location in an area that has experienced massive urban renewal housing starts and residential projects in recent years, especially in the past year," Amot CEO Avi Mosler said.

Amot, controlled by the Alony Hetz group with a 56% stake, holds 103 income-producing properties in Israel with 1.4 million square meters in total space. Its prominent properties include ToHa1, the Amot Atrium tower in Ramat Gan, and the Amot Tower (the former IBM building).

Published by Globes, Israel business news - en.globes.co.il - on September 19, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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