Haim Katzman Cancels Sale of Global Real Estate Firm Amid Control Disputes
Haim Katzman, the 76-year-old founder and CEO of global real estate company G City, recently withdrew from a deal that would have transferred control of the firm to businessman Tzachi Abu, owner of Ari Real Estate. The deal, valued at 2.55 billion shekels, also involved investors Kidan Dahari and Yaron Adib through their company Yesferu, who planned significant operational changes including executive pay cuts and asset sales. Abu described Katzman's reluctance to relinquish control, saying Katzman sought a partner to invest a billion shekels while maintaining his influence and protecting his team from dismissal, leading Abu to abandon the transaction.
This failed sale adds to a history of control battles Katzman has faced over the past two decades. G City, formerly Gazit Globe, operates in nine countries with 85 properties but has seen its stock lose nearly 70% of its value since 2020, mainly due to heavy debt exceeding 20 billion shekels from expansion during low interest rates. Katzman holds about 30% of G City through his parent company Norstar, with his stake now worth roughly 140 million shekels.
Previous takeover attempts include a 2022 bid by Israel Canada, controlled by Barak Rosen and Assi Tuchmaier, who acquired a 22% stake in Norstar but were thwarted by Katzman’s strategic dividend share issuance. Katzman has also engaged in earlier battles, such as a failed hostile takeover of Ormat Industries in 2007 and a costly acquisition and subsequent divestment of construction firm A. Dori.
Despite skepticism from some market insiders about Katzman’s willingness to sell, sources close to him insist he is eager to find a strategic buyer and that multiple offers remain on the table. Katzman is expected to step down as CEO within two months, handing leadership to Keren Kalifa, his deputy, who has been central to recent negotiations. Katzman’s age and desire to pass the reins are cited as reasons for this transition. The future of G City’s control remains uncertain but is likely to be clarified soon.
