Tzachi Abu Acquires Controlling Stake in G City from Haim Katzman for NIS 661 Million

In a major real estate deal in Israel, Ari Nadlan, a commercial real estate company controlled by businessman Tzachi Abu, is purchasing a 26% controlling stake in G City from Norstar, owned by Haim Katzman, for NIS 661 million. This acquisition values G City at NIS 2.55 billion, representing a premium of over 30% compared to its current market capitalization of approximately NIS 1.96 billion on the Tel Aviv Stock Exchange.

As part of the transaction, Ari Nadlan will acquire the shares at an average price of NIS 14.95 per share. Additionally, Ari Nadlan has been granted an option to purchase an extra 7% of G City shares for an additional NIS 192-204 million, which would raise its ownership stake to 33%, while Norstar's holding would decrease to 21%. The deal also includes a joint commitment by both companies to lead a capital raise of about NIS 1 billion to support G City's growth, with an expected capital injection of approximately NIS 540 million from the two parties.

This transaction marks a significant shift in ownership and control within the Israeli commercial real estate sector, reflecting strong investor confidence in G City's future prospects. The deal also aligns with recent trends in the luxury real estate market and ongoing capital market activities in the sector.