The struggle for the shopping center Will improve chin In the city of Modi’in, things are getting complicated. Two income-producing real estate companies – Big Shopping centers andRet 1 – Each one claims eligibility for the purchase of the property, while the owner of the property, the Yishparo company of Kidan Dahari and Yaron Adiv, does not intend to give it up.
This week, Big sent letters to Yishparo and Reit 1 regarding its intention to continue to work to transfer the property to it, after Reit 1 tried to exercise an option to purchase 75% of the property, which was denied by Yishparo. Earlier, Reit 1 announced that the bank guarantees it had provided in favor of the controlling shareholders of Yishparo, Adiv and Dahari, had not been returned at the end of the guarantee period, which was set for December 31, 2021.
Reit 1 further noted that in the guarantee provision agreement, signed in March 2021, it was stipulated that a delay of more than five business days in fulfilling a charge would constitute a breach of the agreement. In practice, therefore, Dahari and Adiv have until Sunday to repay the loan they received from Mizrahi Bank, and Rita 1 guaranteed NIS 213 million.
Working for new loans from banks and institutions
Will improve chin intelligence It is the largest entertainment and shopping center in the Modiin and surrounding area. The shopping center includes rental areas of approximately 25,000 square meters, and is owned by the Yishparo company.
However, Globes has learned that Dahari and Adiv are currently working to obtain a new loan from banks and institutional entities, which will be secured by a lien on Yishparo. Center Modiin and will enable the repayment of the loan to Mizrahi Bank and the release of the guarantees of Reit 1, in a total amount of approximately NIS 230 million (principal and interest). It should be noted that last week, Dahari and Adiv repaid a loan of NIS 100 million plus interest, which the two received at the end of 2020 from Big.
The same guarantees were provided to Dahari and Adiv as part of a deal in which Reit 1 received an option to purchase 75% of the Yishparo Modiin Shopping Center (excluding land adjacent to it). The option was granted in the event that Big does not receive the approval of the competition commissioner to acquire full ownership of Ishpro Center Modiin for NIS 425 million, or alternatively in the event that Big does not complete the acquisition transaction.
At the end of June this year, the competition commissioner granted Big conditional approval for the purchase of the property, and in response, Reit 1 announced that its option would not beWill take effect. However, according to Reit 1, this was not an announcement of the expiration of the option, but only of its non-entry into force, due to the fulfillment of the first condition in Big’s deal with Dahari and Adiv.
Continuation of contacts led to an explosion
The deal to buy the property from Big was signed with Dahari and Adiv privately, and not with Yishparo itself, since at that time Yishparo had not yet been owned by the two. For this reason, the signing of a sale agreement between Big and Yishparo was required, but this agreement was not signed due to the prolongation of the contacts, which eventually led to an explosion between the parties.
In response, Big appealed to the Tel Aviv District Court for enforcement of the agreement and for interim relief, but the court denied the request for interim relief and advised Big to consider carefully whether to proceed with the main procedure of enforcing the agreement. Went into effect, and she announced it would be improved.
In an announcement to the TASE, Reit 1 stated that “according to the provisions of the option agreement, the company will pay an amount equal to NIS 281 million for the purchase of the sale, less the FFO (net cash flow, etc.) that will result from the property between January 1, 2021 and the date Completion of the transaction, and minus 75% of the balance of the loan secured by her mortgage on the property. ” However, two days later Reit 1 reported that Yishparo had rejected its announcement of the exercise of the option.
In response, Reit 1 wrote that it is considering further steps in the matter and is likely to apply to the court demanding enforcement of the option agreement, in case the issue is not resolved earlier between them and will improve. Which the company set for Dahari and Adiv.
In the meantime, as stated, Big’s management sent letters to the other two parties, including a notice of its intention to stand up for its claim for enforcement of the agreement between it and Dahari and Adiv, which allows it to buy the property for NIS 425 million. Therefore, Big warns Reit 1 and Dahari and Adiv against signing an alternative deal regarding the property.