Azrieli Group Ltd. (TASE: AZRG), has notified the Tel Aviv Stock Exchanged that it is selling its shopping mall and office building in Kiryat Ata for NIS 90 million to Milano Construction and Development.
The deal is due to be completed by June 30 2021 and Azrieli, controlled by Danna Azrieli, will recognize a capital gain of NIS 25 million, which will have no material effect on its financial results.
Geocartagraphia business development manager Itai Shafran told "Globes," "We are talking about an asset in a problematic location in a road where 4,000 square meters of street-facing commercial space has opened in the past three years without any major growth in the number of households. There are few parking places and of course the city'sa socio-economic profile is not high."
He added, "All growth in the city is on the north side nearer the Ofer Malls Karion and at the same time Atzmaut Street tself is a commercvially weak street - with no parking space provided and old fashioned stores with key-money."
Shafran concluded, "The mall did not succeed in producing anchors in it. Super-Pharm for example, is located at the corner of Atzmaut and Zevulun Streets near the health fund and the mall didn't even have a supermarket.
Published by Globes, Israel business news - en.globes.co.il - on February 24, 2021
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