Israeli Investors Acquire 26% Stake in G City, Plan Expansion and Refocus on Domestic Real Estate

Kidan Dahari and Yaron Adiv surprised the Israeli real estate and capital markets by announcing their entry into a deal to purchase a 26% stake in G City, a veteran income-generating real estate company. They are partnering with Tsahi Abu's Ari Nadlan to acquire these shares equally from Norstar, owned by Haim Katzman, for 661 million shekels. Dahari, chairman and owner of Yespro, declared their intention to transform G City into a leading real estate empire and restore it to its former prominence.

The new owners plan to focus G City's operations on Israel while divesting foreign assets and significantly reducing the company's high leverage and expenses. Both Dahari and Abu will be actively involved in managing the company and its properties. Dahari emphasized that they intend to increase their holdings beyond the initial 26% stake, as they have options to acquire additional shares and seek full control to apply their expertise.

This acquisition closes a circle for Dahari and Adiv, who had previously attempted to buy Norstar, G City's parent company, for 2.15 billion shekels about four years ago. That deal fell through due to market declines and rising interest rates, which destabilized Katzman's leveraged empire. Dahari noted that the current purchase is at a much better price and that G City has strong assets in prime locations despite past difficulties affecting its valuation. They are confident they can correct these issues and revitalize the company.