Yespro-Tanufort Joins Tzachi Abu in Controlling Stake Acquisition of G City

Yespro-Tanufort, a real estate investment company owned by Kidan Dahari and Yaron Adiv, announced it will partner with Ari Real Estate, controlled by Tzachi Abu, to acquire a controlling stake in G City alongside Chaim Katzman. The agreement establishes a limited partnership with equal 50% ownership, which will purchase shares of G City. Both parties will share acquisition expenses equally, and all partnership decisions require mutual consent. Each partner can recommend half of the directors in the partnership.

Yespro-Tanufort and Ari Real Estate will jointly acquire 26% of G City's shares from the current controlling shareholder, Norstar, for approximately 661 million shekels, valuing G City at about 2.6 billion shekels. The deal includes a mutual option mechanism to buy or sell an additional 7% of shares for 192 to 204 million shekels. Following this transaction, the partnership's stake could rise to 35%, including 2% potentially purchased from the public, while Norstar's holding would decrease to 21%.

Yespro plans to finance the deal through its own resources and debt raising. Upon completion, G City will conduct a capital raise of about one billion shekels to immediately strengthen its capital structure and enable Norstar to significantly reduce its financial debts. The companies emphasized that the future of the Israeli real estate market lies in long-term rentals.