G City Real Estate Deal Collapses as Katzman Cites Partner Disputes and Financial Concerns

A month after signing, the deal to sell control of the Israeli commercial real estate company G City to Ari Nadlan and Wishpro has fallen apart. In his first public comments, Katzman explained that the collapse was due to disagreements over new partners and deviations from the original agreement terms. He said that two months ago, Nostar announced plans to sell some shares to reduce leverage while retaining ownership in G City. A month ago, a solid agreement was signed with a respected partner, with the key condition that Ari Nadlan would be the buyer of the shares after confirming the company's financial strength.

However, two weeks ago, Katzman learned that Ari Nadlan had brought in a new partner whose financial profile was significantly weaker. Yesterday, Katzman received the updated agreement, which included provisions allowing changes in control and even Ari Nadlan's complete exit, violating prior understandings. Following this, Katzman said he has already received offers from two other interested parties and decided to reopen the sale process, expecting more buyers to emerge.

Katzman also noted ongoing efforts to execute other transactions in Europe to reach a target of 50% ownership and acknowledged the need to reduce management and general expenses. The situation highlights challenges in the real estate investment sector amid financial and partnership complexities.