The fight for Alon Blue Square properties continues, with the Gindi family seeking to buy Blue Square Real Estate’s holdings in the TLV Fashion Mall and the adjacent parking lot - valued at NIS 2.02 billion. The offer came from Manor Gindi, Ori Levy, and Kfir Gindi, through their company, Gindi Towers Tel Aviv.
The three are also co-owners of Gindi Investments, which holds 25% of the mall and parking lot and will be responsible for its management in the years after it opens. Another 25% of the properties is held by a company owned by Moshe and Yigal Gindi - Manor and Kfir are the former’s children; Ori Levy is his son-in-law.
The offer, along with offers for control of Blue Square Real Estate and its parent company, forces Alon Blue Square chairman Avigdor Kaplan to consider the proposals and pick the best path forward for shareholders and creditors.
Blue Square Real Estate holds 50% of the shopping mall and lot in Tel Aviv - a NIS 1.01 billion return on the properties. In its Q3 2015 report, the commercial properties in the project were valued at NIS 1.25 billion - with Blue Square Real Estate holding the aforementioned 50%.
The latest move by Manor Gindi, Ori Levy and Kfir Gindi is intended to avert the potential entry of Gindi Holdings as an indirect partner in the project. Gindi Holdings is controlled by Lital, Avi, Guy, Roy, and Menahem Gindi - the offspring of Yigal Gindi and cousins of Manor and Kfir.
Gindi Holdings recently submitted a bid for the controlling share (54%) of Blue Square Real Estate for NIS 970 million (for a company valuation of NIS 1.8 billion), and later changed approach and signed a conditional agreement with Alon Group for the controlling stake (72.7%) in Alon Blue Square for NIS 115 million.
International brands
The TLV Fashion Mall, scheduled to open in September, will host 32,000 square meters of commercial space on two floors and 250 stores including international fashion brands and leading domestic brands. According to the developers, the mall’s annual revenue will reach NIS 1.5 billion. The mall is part of the Gindi Tel Aviv complex currently under construction.
Aside from the shopping center and adjacent lot, the complex will include 11 buildings with 722 housing units and 54 apartments for rent. According to the most recent Blue Square Real Estate financial reports, the company has sold 716 units in the complex for NIS 1.886 billion (including VAT), of which it has collected NIS 1.283 billion. Blue Square Real Estate holds 49.5% of the residential company.
Published by Globes [online], Israel business news - www.globes-online.com - on February 9, 2016
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