Norstar Seeks New Investor for G City After 661 Million Shekel Deal Collapse

Norstar, the controlling shareholder of the commercial real estate company G City, announced the cancellation of a major share sale deal and is restarting the search for a new strategic investor. The original transaction, reported in early July, involved selling 26% of G City shares for 661 million shekels to Ari Nadlan, controlled by Tzachi Abu, later expanded to a partnership with Wishpro, led by Kidan Dahari and Yaron Adiv. The buyers were also expected to purchase an additional 7% stake subsequently.

On August 3, both parties signed a cancellation agreement nullifying the share purchase and voting agreements, with each side waiving any claims related to the contracts. The 20 million shekel deposit held in escrow was returned to Ari Nadlan. The cancellation followed Norstar's controlling owner, Haim Katzman, reviewing the agreement between Ari Nadlan and Wishpro, which indicated the buyers intended to quickly seek control over G City.

Following the deal's collapse, Norstar's board decided to resume exploring alternative options to sell part of its G City shares to another strategic investor. The company emphasized it does not plan to sell shares through the stock exchange but will continue a structured process with potential investors. Norstar has engaged Discount Capital Underwriting to assist in identifying and evaluating offers and plans to hold an investor call to explain the cancellation background and next steps.

The transaction was intended to help Norstar repay its debts, with G City relying on the expected capital injection. Of the 661 million shekels, 280 million were to be returned to the company through a capital raise totaling about one billion shekels.