Income producing real estate company Mega Or Holdings Ltd., controlled by Zahi Nahmias, is set to buy shopping malls company Ispro from Property and Building Ltd. (TASE: PTBL), which is controlled by Eduardo Elsztain's IDB Development-Discount Investment group. Mega Or will pay NIS 855 million for 100% of Ispro, representing a multiple of 1.06 on Ispro's shareholders' equity (including owner's loans).
The deal could be signed today, subject to final agreement between the parties. Ispro has seven malls, in Modi'in, Kiryat Gat, Nes Ziona, Beer Sheva, Jerusalem, Bet Shean, and Arad.
According to market sources, the original asking price for Ispro was NIS 900 million. The other bidders for Ispro were Reit 1, Lahav LR, and Tnuport.
For Property and Building, and for the IDB Development-Discount Investment group, the sale is part of a strategy of exiting the retail sector. Property and Building recently sold its 50% share of the Kiryat Ono mall to Amot, which holds the other 50%, for NIS 538 million.
Published by Globes, Israel business news - en.globes.co.il - on January 26, 2020
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