Sources inform ''Globes'' that that the Nakash brothers and US businessman Richard Cohen have bought the rights in Tel Aviv's Dizengoff Center from Edri-El Israel Assets Ltd. (TASE: EDRL), which announced on Tuesday that it had sold its rights to 30% of the mall for NIS 304 million. The 40,000-square meter Dizengoff Center is one of Tel Aviv's icons. Edri-El owns 12,300 square meters in the mall.
Rafi, Joe, and Avi Nakash, the owners of Jordache Enterprises, have been expanding their real estate holdings in Israel and overseas. In Israel, they also own Arkia Airlines Ltd. and Ampa Ltd. Earlier this month, with partners, they submitted a NIS 52 million bid for airplane components manufacturer and services company TAT Industries (TASE: TAT5). Late last year, they joined Nochi Dankner's consortium to retain control of IDB Holding Corp. Ltd. (TASE:IDBH).
Edri-El sold its rights ahead of next Sunday's bondholders meeting to discuss its debt that is falling due now. The company owes NIS 330 million in two bonds, which bear 6% interest. The auditors of the financially strapped company attached a going concern warning to its financial report for 2013. The auditor said that the company's current liabilities exceed its current assets by NIS 97 million, and it has not yet raised the sources for meeting its commitments for 2014 and beyond.
Edri-El sold its rights in Dizengoff Center to the Nakash brothers four months after REIT 1 Ltd. (TASE:RIT1) sued it for NIS 56 million for cancelling its signed agreement to sell the property to REIT 1 in early 2013.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2014
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