Big Closes In on Exiting US Market After 16 Years, Retains Single Shopping Center

Big continues its divestment strategy in the United States, recently completing the sale of its 80% stake in the Legends at Sparks Marina shopping center in Sparks, Nevada, for approximately $82 million. This transaction values the property at $103 million, 8% above its book value as of March. Its partner, Migdal Insurance, sold its remaining 20% stake as part of the deal. Earlier this year, the property repaid a $50.5 million loan provided by Big, resulting in a total expected cash flow of $92.5 million before fees and taxes. Big extended a $75 million bridge loan to the buyer, Alturas Capital Partners, for six months with an extension option. The shopping center spans 39,000 square meters and was 96% leased at the end of Q1.

Big and Migdal originally acquired the asset in August 2017 for $83 million. Big entered the US market in 2010 through its subsidiary Big USA, partnering with Migdal to operate open-air shopping centers. Due to retail sector weakness predating COVID-19 and further declines in physical store sales during the pandemic, Big decided in November 2020 to exit the US market and liquidate its assets. At that time, Big operated 25 US shopping centers. The company sold nine properties in 2021 and 11 in 2022, generating $568 million. In 2023 and 2024, it completed two more sales totaling $32 million and sold two additional properties last November for $114 million.

Following the latest sale, Big now holds only one US asset, a shopping center in Pennsylvania, which it also plans to sell. Outside the US, Big sold its 50% stake in several logistics properties in France to its partner for €23.4 million (about 81 million shekels). The properties are expected to repay a €20 million shareholder loan by the end of 2027. After completing its US exit, Big will focus on its international operations in Poland, Montenegro, and Serbia, which it considers growth engines and is working to expand.