IKEA will set up another branch in Israel, near Ashdod. A report by Ari Real Estate (formerly Arena Group) to the stock exchange shows that the company has signed a memorandum of understanding for the sale of half of the holdings of SALS Mefarshim and a third party in the company which owns (indirectly) land in an area of about 110 dunams in Ashdod.
The land, intended for trade and employment, was sold to companies from the JTLV Group and the Fisher-Bronfman Group in equal parts, for an amount of NIS 226 million.
An additional branch of the IKEA chain is expected to be established on about 30 dunams of the area. The store is expected to cover an area of about 25,000 square meters.
According to Ari Real Estate (subject to the signing of a binding agreement and the completion of the transaction), SALs will generate a capital gain, before tax, of NIS 60-70 million from the sale of its holdings. Assuming that the valuation of the complex reflects the transaction price, Record an additional profit before tax of NIS 60-70 million as a result of an increase in value in respect of the balance of its holdings in the company that sold the land.