Sofrin Group Sells Industrial Land in Nesher for $30 Million

Sofrin Group announced on Monday its sale of a 29-dunam (approximately 7.17 acres) plot of land in the Nesher industrial zone, which it acquired with partners five years ago. The land, formerly a fuel depot for the IDF, is being sold for approximately NIS 113 million (about $30 million) plus VAT. Sofrin's share of the proceeds is about NIS 28.3 million (around $7.5 million).

The plot was originally purchased for NIS 91 million (about $24 million) in 2019. The payment is due by November 30, with a portion to be used to repay a loan taken out by Sofrin and its partners for the initial acquisition. The sale is estimated to yield a return of just over 4.9% for Sofrin.

Demand for industrial and logistics land in northern Israel has been increasing recently due to a shortage of available plots in central Israel's high-demand areas. Sofrin stated that the decision to sell stems from a strategic shift towards focusing primarily on urban renewal development projects. The sale will allow the company to repay its loan, improve liquidity, and reinvest capital into other projects.

Zachi Sofrin, Chairman of Sofrin Group, commented on the company's diversified real estate strategy, which includes residential, urban renewal, employment, commerce, and logistics. He emphasized the flexibility to allocate investment to areas with the best opportunities and growth potential. Sofrin Group, founded in 2009, is jointly controlled by Leon and Zachi Sofrin and focuses on real estate development, group purchases, and income-generating properties.