Azrieli Group Ltd. (TASE: AZRG) today announced that it is in advanced talks to sell its holdings in the Pi Glilot site to Trigo Investments and Real Estate Group for NIS 130 million. Azrieli indirectly owns 13% of the Pi Glilot company, which owns the rights to 164 dunam (41 acres) on the site in Ramat Hasharon. Azrieli also owns 6.4 dunam (1.6 acres) on the site purchased in December 2015 from Sonol Israel Ltd. Sonol was recently sold to a group of investors headed by David Wiessman.
Trigo, owned by Tal Peretz, Gal Peer, and Ron Novotony, already owns several dozen dunam at Pi Glilot. The approved plan for the site includes construction of 12,000 apartments and 700,000 sq.m. of commercial and business space. Completion of the deal is subject to several conditions, including the waiving of first refusal rights by the other shareholders in Pi Glilot and obtaining approval from the Ministry of Finance.
Azrieli CFO Irit Sekler-Philisof today said, "The sale of Pi Glilot properties, together with the Sonol deal, is another step towards implementation of the group's strategy of concentrating on its core income-producing real estate business. Proceeds from the sale of the Granite Hacarmel assets, including Tambour, Sonol, Via Maris, Supergas's solar business, and the current deal, are expected to reach NIS 1.6 billion. Once these deals are completed, the main business retained by Granite Hacarmel will be Supergaz and Ges."
NIS 500 million in proceeds
Last month, Azrieli signed an agreement to sell Sonol to businessman David Wiessman, until recently one of the leading executives in Alon Israel Oil Company Ltd. (Alon Group). Wiessman is believed to be one of the parties chiefly responsible for the group's financial troubles and the collapse of the Mega retail chain. The total price of the deal is NIS 364 million, but Wiessman will pay only NIS 188 million when it is completed. The rest will be paid in a number of ways. Wiessman is making the acquisition through the Israel Oil & Gas Fund limited partnership; he controls the general partner in it. Azrieli's proceeds from Sonol, including the current land deal, are expected to reach NIS 470 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 10, 2016
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