Big buys 50% of Bat Yam mall

Bat Yam mall Photo: PR
Bat Yam mall Photo: PR

Big deputy CEO: The Bat Yam mall is one of Israel's oldest and strongest malls.

Big Shopping Centers (2004) Ltd. (TASE:BIG) today reported that it had completed a deal for buying 50% of a Bat Yam shopping mall from Ashtrom Properties Ltd. (TASE:ASPR) at a value of NIS 555 million for the mall.

The Bat Yam (GLA) mall has 21,000 square meters of commercial space. The mall has over 100 different stores; its leading tenants include H&M, Castro Model Ltd. (TASE: CAST), Renuar, Fox-Wizel Ltd. (TASE: FOX), ALDO Shoes, McDonalds, and Steimatzky. The mall has more than 1,000 parking places. Its current annual net operating income (NOI) is NIS 39 million.

The acquisition deal is taking place through the purchase of 50% of the shares in the asset company from Ashtrom Properties (which fully owned the property before the deal), so Big is expected to pay NIS 125 million, reflecting the company's net value, after deducting liabilities.

Big deputy CEO Hay Galis said that the acquisition of the Bat Yam mall, which occupies a strategic location and is one of Israel's oldest and strongest malls, would bolster Big's property portfolio in Israel. He added, "In addition to the attractiveness and strength of the mall today, Big and Ashtrom intend to continue investing in upgrading the mall and integrating it into the urban renewal movement and growth in Bat Yam."

Ashtrom Properties CEO Yaron Rokman stated, "We are delighted with the completion of the deal with Big and its entry as a partner into the Bat Yam mall. Now, with the addition of Big, we will take action to create an improved shopping and entertainment experience for the residents of the city and its surroundings. The partnership in the Bat Yam mall is the initial basis for continued successful cooperation between the two groups."

Published by Globes [online], Israel Business News - - on January 24, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

Bat Yam mall Photo: PR
Bat Yam mall Photo: PR
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