New Partners Acquire Control of Israeli Real Estate Giant G City, Aim to Build Empire

Four years after attempting to take over G City, Israeli real estate investors Yaron Adiv and Keidan Dahari, owners of the Tanufort-Yishpro group, have joined forces with Tsahi Abu's Ari Nadlan to acquire controlling shares in G City from Norstar, owned by Haim Katzman. The partnership will form a limited company with equal ownership, purchasing about 26% of G City's shares for 661 million shekels, with an option to buy an additional 7% for up to 204 million shekels. This will give the new partners a combined 33% stake, reducing Norstar's holding from 54% to 21%.

G City, specializing in income-generating real estate such as shopping centers, owns 85 properties worldwide valued at approximately 29 billion shekels, spread across Israel, Poland, Scandinavia, the US, Canada, and Brazil. Dahari expressed ambitions to restore G City to its former prominence, calling it "a real estate empire" in the making. Following the announcement, G City's stock rose about 7% to a market value of 2.36 billion shekels, marking a 20% increase over two weeks.

The deal marks a full circle for Adiv and Dahari, who previously acquired Tanufort and Yishpro, growing their real estate portfolio significantly. They had unsuccessfully bid for Norstar in 2022 but now enter at a lower valuation, which Dahari describes as a better and cheaper opportunity. Abu highlighted the alignment of vision and work ethic as key reasons for partnering with them amid multiple institutional offers.

Looking ahead, the partners plan to focus G City's operations more on Israel, reduce expenses and leverage, and sell some foreign assets. They intend to manage the company hands-on and improve operational efficiency. A capital raise of about 1 billion shekels is planned to strengthen G City's financial structure and reduce Norstar's debt. Dahari and Abu also aim to increase their ownership beyond the current deal and option shares, emphasizing the need for full control to implement their strategy.

This transaction signals a significant reshaping of G City's ownership and strategy, with experienced local investors aiming to revitalize the company and capitalize on its prime real estate assets.