The businessmen from Ashdod, who together joined the listed company “Arena Group” on the purity of the city of Ashdod, are embarking on an extensive shopping trip.
The Ashdod-controlled public real estate company of Tzachi Abu (about 58%) and Jackie Ben Zaken (about 16%), Arena Group (traded at a value of about NIS 600 million after the acquisition of the new owners), continues to expand its operations and purchase commercial properties Significant.
The company reported to the stock exchange on offers and contacts for the purchase of four new and significant assets in the cumulative amount of hundreds of millions of shekels:
Arena Group reported to the stock exchange on the signing of a binding agreement to acquire control At the My Mall in the city of Limassol in CyprusTogether with its business partner – Dorsal.
As part of the deal, Arena and Dorsal will purchase approximately 83% of the shares of the companies holding the mall from the special directors of BSR Europe, which collapsed, and other shareholders in the project.
In exchange for the shares, Arena Group and Dorsal will pay A total amount of about NIS 164 million eachSubject to regulatory and other approvals.
The entire project covers an area of about 90 dunams and includes a mall with areas for rent of about 30,000 square meters, which are populated with 99% occupancy and generate a gross profit from rental activity (WE) Of about 7 million euros a year.
Also assets from the controlling shareholder Abu and Ben Zaken –
The Abu Yechiel Group has decided to concentrate its entire commercial issue under the public company Arena Group and to that end it seeks to sell its ownership in this field to the public company.
This involves the purchase of two lands for the construction of commercial centers in the cities of Yavne and Netanya. The land in Yavne is intended for the construction of a commercial center with commercial and employment areas of 4,335 square meters, while the land in Netanya is intended for the construction of a commercial center with a commercial area of 1,630 square meters and with office areas of 3,200 square meters.
At the same time, Arena Group reported that it is negotiating with third parties to purchase two more properties –
The first property includes a neighborhood shopping center in the 16th district in the city of Ashdod.
The second property includes the right to purchase land designated for the construction of sheltered housing west of Tel Hashomer Hospital.
The property in Ashdod:
Includes land in an area of 4,976 square meters, on which a three-level commercial center is built, with a total volume of 5,500 square meters.
The consideration for the property will stand at NIS 110 million, An additional NIS 9 million for parking, and it will be adjusted for actual rentals, so that it reflects an annual return of 6% on the annual rent expected to be received from tenants in the commercial areas.
The second property includes a payment of NIS 21 million (Additional VAT), in exchange for the purchase of the right of a third party to purchase land in an area of 4,924 square meters, intended as stated for the construction of sheltered housing.
As soon as the transaction is completed, Arena Group plans to work to increase the rights in the land, which will not be less than 20,000 square meters, as well as to enter into lease and development agreements with the Israel Land Authority (RMI) for the purchase of the land. In the amount of up to NIS 80 millionPlus VAT.
Recently, Arena Group also announced that it will acquire from Ben Zaken Land of 18.4 thousand square meters, adjacent to the Star Center shopping center Owned by her, For NIS 38.6 million. The deal was signed by Arena Group, after agreeing a week earlier to purchase the minority stake (25%) in Star Center from the Phoenix Company, For NIS 315 million.
The takeover of Arena Group
Abu bought the controlling stake in Arena Group last year from the previous controlling shareholder, Marcus Weber, who himself acquired control of it from Jackie Ben-Zaken and his partners about a decade ago (but failed management caused the stock to crash).
Abu Yechiel acquired about 65% of the shares in Arena Group, for $ 130 million.
Since the acquisition, Tzachi Abu has been a member of its board of directors and serves as CEO.
The former chairman of the board, Moshe Karadi, is the chairman of the board.
Ben Zaken returned to Arena Group, which he sold about a decade ago through the acquisition of Avraham Nikashvili’s shares and his business connection with Tzachi Abu. Arena was the beginning of his breakthrough into the big market and he actually created a closing circle upon his return to the company.
Arena Group is engaged in income-producing real estate, and owns two main properties in Israel: 75% of the shares in the Star Center shopping center in Ashdod and 100% of the shares in the Arena Mall in Nahariya and plans to expand in the field of commercial real estate.
The stock climbed
Arena’s current market value is NIS 608 million, after the company’s share jumped 169% in 12 months and 516% in two years. Following the takeover of the company by Tzachi Abu and later Ben Zaken.
Last November, the company made a private placement of NIS 50 million.