Melisron in advanced talks to enter data center sector

Liora Ofer

The Israeli income-producing property company is in negotiations with investment company Chirisa to set up data centers in Israel, Greece and Cyprus.

Israeli income-producing real estate company Melisron Ltd. (TASE: MLSR) is in advanced negotiations to enter the data centers sector, sources inform "Globes." Melisron is in talks with investment firm Chirisa Capital Management, whicxh specializes in digital infrastructures, to build several data centers in Israel, Greece and Cyprus for NIS 500 million.

The data centers market (server farms) is seeing surging demand as cloud computing services proliferate and the process has accelerated since the start of the Covid-19 pandemic. Dublin-based Chirisa last month sold California-based 365 Data Centers, which it bought in 2017 for $100 million, for an estimated $500 million.

"Globes" reported earlier this month that Melisron's big rival in the shopping mall sector Azrieli Group Ltd. (TASE: AZRG) had bought land for NIS 118 million for the construction of data centers for Amazon. Last year Azrieli acquired 20% of a US data centers company.

Entering the data centers sector will provide Melisron with an opportunity to diversify its revenue sources, especially during a period when malls are being hit hard by the Covid-19 pandemic. Earlier this year, Melisron's controlling shareholder Lior Ofer, chairperson of Ofer Investments said, "The company needs to be ready to identify opportunities in this period and is examining options to diversify its holdings, for example by acquiring server farms and logistics centers."

Melisron said, "The company examines from time to time its investments and is examining new channels of investment."

Published by Globes, Israel business news - en.globes.co.il - on November 24, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

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