Tzachi Abu Expands Ashdod Real Estate Holdings in $35 Million Deal
Businessman Tzachi Abu is significantly increasing his stake in a major commercial and industrial complex in Ashdod through his company, Ari Real Estate Investments Ltd. The company's subsidiary, S.L.S. Mefrashim Ltd., has signed an option agreement to acquire the full holdings of Iron Real Estate Ltd. in the company "Machzikei Ashdod Ltd.". This move follows closely behind another deal where Abu's Gefen Living acquired nearly half of the controlling interest in Way-Box Real Estate for approximately 76 million shekels.
"Machzikei Ashdod" holds a 72% stake in "Pninat Ashdod (2005) Ltd.", which controls development rights for about 110 dunams near the Ashdod train terminal. This area has development potential for approximately 180,000 square meters of commercial space. Upon completion of the deal and exercise of the option, S.L.S. Mefrashim's share in "Machzikei Ashdod" will rise to 95.84%, giving it complete control.
S.L.S. Mefrashim paid 4.7 million shekels plus VAT as an option fee to Iron Real Estate. The company has 60 days, until November 10, to exercise the option. The total purchase price for the stake is 137 million shekels, to be paid upon deal completion. Additionally, a loan of approximately 14.268 million shekels, currently held by "Machzikei Ashdod" and owed by Iron Real Estate, will be transferred to S.L.S. Mefrashim at closing. Ari Real Estate has not yet decided whether to finance the acquisition with its own funds or through bank loans.
