Daler Rechev Negotiates Sale of Flagship Auto Showrooms for Over Half a Billion Shekels

Daler Rechev, a leading Israeli vehicle importer, announced Tuesday it is in negotiations to sell its share in the La Guardia Towers project, which houses flagship showrooms for its Mazda, Ford, and BMW brands. The potential deal is valued at NIS 562.5 million.

The company informed the stock exchange that it has exercised its right of first refusal, notifying its partner, Vitania Ltd., of the offer. Vitania has 60 days to respond and is currently reviewing the proposal. Daler Rechev emphasized that the offer is preliminary and non-binding, with no certainty of a final deal.

Sources indicate that a condition of the sale is Daler Rechev continuing to lease the showrooms long-term, ensuring uninterrupted operations. The company reportedly received three separate offers for its stake, valuing the entire project at approximately NIS 1.2 billion.

The La Guardia Towers complex, built starting in 2009 with an investment of around NIS 300 million, features a unique 40-meter-high "car display tower" originally designed for Mazda and Ford. BMW also later established a showroom at the site. In recent years, Daler Rechev's market share has significantly declined, with Mazda's share falling below 1% this year after a 73.6% drop compared to last year, a stark contrast to its peak when it held nearly 30% of the Israeli car market.