Businessman Tzachi Abu Seals Major Deals in Real Estate and Energy
Translated & summarized from Globes by baba
Businessman Tzachi Abu's company, Ari Real Estate, is acquiring a 407-dunam industrial site in Be'er Sheva for 110 million shekels and selling a 50.1% stake in the "Orot Yitzhak" power station for 370 million shekels. The Be'er Sheva deal includes leasing back factory sites to the sellers, Adama and Lycored, for an annual rent of 7.7 million shekels. The power station sale values the project at up to 1.46 billion shekels, with potential for an additional 180 million shekels payment.
The story in 6 lines · by baba
- Tzachi Abu's Ari Real Estate will buy a 407-dunam industrial site in Be'er Sheva for 110 million shekels.
- Ari Real Estate and Jackie Ben-Zaken sold a 50.1% stake in the "Orot Yitzhak" power station for 370 million shekels.
- The Be'er Sheva land deal includes leasing factory sites back to sellers Adama and Lycored.
- Annual rent for the leased factory sites in Be'er Sheva will total 7.7 million shekels.
- The "Orot Yitzhak" power station deal could yield an additional 180 million shekels.
- The "Orot Yitzhak" project is valued at up to 1.46 billion shekels.
Businessman Tzachi Abu has had an active week, with his company Ari Real Estate involved in two significant transactions. The company signed a memorandum of understanding to acquire rights to a 407-dunam industrial complex in Be'er Sheva for 110 million shekels from Adama (formerly Makhteshim) and Lycored. This acquisition includes land currently occupied by factories belonging to the two selling companies, with plans for remediation of existing soil contamination to be detailed in a future agreement.
Simultaneously, Ari Real Estate and its partner Jackie Ben-Zaken announced the sale of a 50.1% stake in the future "Orot Yitzhak" power station, located in the Menashe Regional Council, for 370 million shekels. This divestment will reduce Ari Real Estate's holding to approximately 30% and Ben-Zaken's to 20%. The partners also plan to construct a server farm adjacent to the power station.
As part of the Be'er Sheva land deal, Ari Real Estate will lease back the factory sites. Lycored will lease its site for five years with two five-year extension options, and Adama will lease its site for two years with a one-year extension option. The total annual rent for both companies will be 7.7 million shekels.
An additional payment of 180 million shekels could be made if the power station's capacity increases from 850 to 1,700 megawatts. The transaction values the "Orot Yitzhak" project at up to 1.46 billion shekels, with an estimated total profit of 330 million shekels.
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