Rani Zim (Photo by Meir Edri, Itai Schlein)
Rani Zim Shopping Centers continues its momentum of activity and significantly expands its presence in Ganei Tikva. Today, the company updates that it is purchasing, together with the Reit 1 Fund, land in Ganei Tikva for about NIS 124.5 million through a joint company. Rani Zim Shopping Centers will hold 55% of the shares of the joint company, and Rit1 will hold the remaining shares at a rate of 45%.
The land purchased is adjacent to the Zim Urban Ganei Tikva shopping center, which is jointly owned by Rani Zim Shopping Centers and Rit 1, and the planned project will in fact be a significant extension of the existing project and will serve the residents of the entire Ono Valley and beyond.
On the purchased land, a commercial center and office space of about 25,000 square meters can be established, of which about 20,000 square meters are commercial and another 5,000 square meters are offices. “Owned by the company Verit 1, which covers a total area of approximately 9,200 square meters. Construction of the center was completed in August 2021, and is marketed almost in full.
At the same time, Rani Zim Shopping Centers and Reit 1 entered into an agreement stipulating provisions regarding the construction, management, maintenance and financing of the project to be built on the land, as well as provisions regarding the bonus to which Zim will be entitled in cases where the project returns exceed the returns specified in the shareholders’ agreement.
An option agreement was also signed between the parties, under which Reit 1 is entitled to purchase additional shares of the joint company in a manner that will hold 50% of them. Zim notes that the financing of the purchase of the land will be carried out through its own sources and through bank financing. The transaction was accompanied by Adv. Zehavit Shahaf, the legal advisor of Rani Zim Shopping Centers, accompanied by the firm of Adv. Gross & Co. The Reit 1 was represented by the firm of Fischer Bachar & Co.
Last month, Zim reported the sale of 50% of the complex in Kfar Saba to the Kardan-Geva partnership for about NIS 165 million. This transaction, which reflects a value of approximately NIS 330 million for the complex, may yield ZIM shopping centers a profit of approximately NIS 31 million. A project is being built on the complex, which will include commercial areas, logistics, server farms and offices.
In addition, at the end of last December, Rani Zim Shopping Centers completed the issuance of a new series of bonds, raising NIS 345 million. The bonds were issued for a maturity of about 6 years and an annual interest rate of about 0.94% was set for them.
Rani Zim Shopping Centers operates in the field of establishing and managing commercial centers, purchasing, initiating and improving land in Israel. The group operates out of a belief in the periphery and an understanding of the changing culture of consumption and the need for a shopping experience. The group has 7 active shopping centers, in Arad, Netivot, Beit She’an, Maalot, Nof Hagalil, Umm al-Fahm and Yarka, and has completed the construction of 2 more shopping centers in Ganei Tikva and Tira, which are almost fully marketed, and are opening to the public in February 2022.
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In addition, the company promotes the Kfar Saba project and commercial projects in the Arab company in Tamra, Taibeh, Umm al-Fahm (Phase 2) and Rahat, and has also begun development activities for the residential company in the Arab company, which at this stage includes a project in Paradise. Rani Zim, who serves as chairman of the board, is a veteran entrepreneur in the Israeli market, and among other things, he established the “almost free” food chain, which was sold in 2012 at a value of about NIS 350 million.
Rani Zim Holdings Group was established in the late 1990s by Rani Zim, and currently operates in the field of commercial real estate through Zim Urban (Rani Zim Public Shopping Centers), in the field of finance, and credit and fintech through Valio Capital One, which controls Psagot Investment House. , And in the field of retail through Office Depot and Duty Free operations.
Rani Zim, Chairman of Rani Zim Shopping Centers: “The Ganei Tikva area is in a significant development boom, and we identify great business potential for us. The area, which is characterized by a population with a high socio-economic profile, is attracting keen demand, and accordingly a growing need is developing for the establishment of commercial and office complexes to serve the community of the area. Therefore, we made a decision to expand our existing project in the locality, and to deepen the variety of businesses and services that will be offered to the residents of the area..”
Avishai Avraham, CEO of Rani Zim Shopping Centers: “The purchase of land in Ganei Tikva is part of the strategy to expand our activities in the field of neighborhood centers. On the purchased land, we will build a complex that will constitute a substantial extension of the ‘Zim Urban Ganei Tikva’ project, the construction of which was recently completed, and which will be opened in the near future. “Now, we intend to establish an additional 25,000 square meters of commerce and offices for the benefit of the residents of the Ono Valley, so that the center in Ganei Tikva will actually become a central and significant shopping and entertainment center for them.”
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