Max Stock Leases New Logistics Hub in Ofakim for $5.7 Million Annually

Retail chain Max Stock is expanding its logistics operations by signing a 20-year lease for a new logistics center in Ofakim. The facility, spanning approximately 45,000 square meters, is currently under construction by a subsidiary of GT Real Estate, owned by businessman Gabriel Tursky. The center is slated for delivery to Max Stock in December 2028.

According to GT's stock exchange filing, the annual income from the property is projected to be around 21 million shekels (approximately $5.7 million). The initial lease term is ten years from the handover date, with automatic extensions for two additional five-year periods, subject to agreed-upon terms. Rent will increase by 5% in real terms at the start of each extension period. Based on the full area and GT's reported annual income, the average monthly rent is approximately 39 shekels per square meter.

GT One Holdings, 50% owned by GT Real Estate, is developing the project. The company recently received a building permit from the Ofakim Local Planning and Building Committee, and construction has commenced. This agreement secures a single tenant for the entire 45,000 square meter project even during its construction phase.

The deal follows a series of recent moves by GT. Last week, the company announced the acquisition of the Rosh Pinna Mall from Ashtrom Properties for 48.5 million shekels, and two months prior, it obtained a permit to build a 6,600 square meter commercial center in Hazor HaGelilit. GT currently owns nine income-generating properties and has several other projects under development, managing a total of approximately 120,000 square meters of income-generating real estate across Israel.

Max Stock's expansion comes after a strong second quarter, with revenues rising about 13% year-over-year to 379 million shekels. Same-store sales increased by 7%, boosted by the opening of new branches, and net profit surged by approximately 30%. These results were partly influenced by the strengthening shekel, which generally benefits importers like Max Stock, although hedging transactions partially offset this effect.