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 now searching 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 including Wishpro, controlled 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, voiding the share purchase and voting agreements. Each side waived claims related to the agreements, and a 20 million shekel deposit held in escrow was returned to Ari Nadlan. The deal fell through after Norstar’s controlling owner, Haim Katzman, reviewed the agreement between Ari Nadlan and Wishpro, which indicated the buyers intended to rapidly seek control over G City.

Following the cancellation, Norstar’s board decided to restart the process of finding a new strategic investor for part of its G City holdings. The company emphasized it does not plan to sell shares through the stock exchange but will pursue a structured sale to 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 and next steps.

The transaction was partly 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.