Reit 1 is making progress on the way to acquiring the Yishparo Modiin shopping center, one of Yishparo’s significant assets, from Kidan Dahari and Yaron Adiv. The Harritt Foundation announced today (Sunday) that it is exercising the option granted to it to purchase the property, after earlier this month the court ruled against Big’s request to stop the exercise of the option and ruled that there is no disposition order preventing that.
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In the past year, since Dahari and Adiv took over Yishparo, there has been a close battle between Big and Reit 1 over the purchase of the property. Despite the announcement of the option, the last word has not yet been said and Big is expected to continue in the courts in the case.
In March of this year, Dahari and Yaron Adiv completed the purchase of Yishparo Properties and Building. The two bought the company for NIS 800 million, and as part of the deal they received loans from various entities. In March, they paid NIS 650 million, an amount they received as a loan provided to them by Mizrahi Tefahot Bank. Reit 1 provided a guarantee of NIS 200 million as part of the same loan from Mizrahi Tefahot, and received an option to purchase Yishparo Modiin.
The option granted to Reit1 was granted to it in the event that Big did not receive the regulatory approvals required from the Competition Authority for the purchase of the property in Modiin. But in July the approval was received from the competition authority. However, later Kidan and Dahari informed Big that they did not intend to sell her the property. In September, Big announced that it would take legal action to complete the acquisition.
According to the option agreement, Reit 1 is to pay NIS 281 million for the purchase of the part in question, less the operating cash flow profit (FFO) generated in it from the beginning of 2021 until the date of completion of the transaction. In addition, 75% of the secured loan will be deducted from the mortgage that rests on the property. The scope of the loan was not announced in Reit 1. The Reit 1 share rose today by 1.4% to a price that embodies a market value of NIS 3.8 billion. Since the beginning of the year, the stock has risen 36.7%.
Yishparo Modiin Center is the company’s largest and most significant asset. It is considered one of the largest shopping centers in the vicinity of the city of Modi’in, and as such it is an attractive destination for the takeover of companies in the field of income-producing real estate. It covers 27,000 square meters and includes a variety of shops and even 10 movie theaters. Improve other commercial centers in Be’er Sheva, Ness Ziona, Ein Kerem (Jerusalem), Kiryat Gat, Beit She’an and Arad. The company also has a logistics center in Be’er Sheva.
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