Acron Sells Another Portion of Tel Aviv Mandarin Complex for $34 Million

Acron announced this week that it has sold an additional portion of its land in the Mandarin complex in northern Tel Aviv for approximately 34.5 million shekels (about $9.3 million). This latest sale is part of an option agreement for land that Acron originally purchased five years ago for 287 million shekels.

In June, the company announced a partial exercise of the option for 98 million shekels, which was the first stage of the deal. The buyer has already paid about 29.4 million shekels of that amount. The funds were directed to Acron S.M. 43, a subsidiary, to partially repay an existing loan on the property. The remaining balance from that initial sale was due in 2028.

This new transaction involves specific plots within the complex, identified as plots 8 in block 6621 and plots 52, 62, 63, and 71-73 in block 6609. The buyer has paid about 10.3 million shekels of the 34.5 million shekel total, which will also go towards partially repaying the loan on the land. The remaining balance for this portion is due by December 31, 2027.

As a result of this partial exercise, the deadline for exercising the remaining options on this section of the land, as well as other sections designated B and C, has been extended to December 31, 2026. Acron stated that the expected profitability from this sale is consistent with previous estimates, though the final profit will depend on the loan amounts the buyers secure to complete their payments, for which Acron will bear interest costs according to the agreement.

The Mandarin complex, located in area TA/3700, is slated for the construction of 114 housing units and additional commercial space. However, resident objections have previously led to planning freezes, prompting Acron to offer the land for sale in stages.