"We will invest NIS 1.2-1.5 billion to build three new malls in Kiryat Ata, Akko, and in Rishon LeZion," Azrieli Group owner David Azrieli told "Globes" today at the opening of a new H&M fashion store at Jerusalem's Malha Mall.
David Azrieli's comments follow the company's plans to hold an IPO on the Tel Aviv Stock Exchange (TASE). Azrieli Group plans to sell 25% of its shares at a company value of NIS 10 billion.
David Azrieli added that the company will also invest NIS 300 million to add another floor to the Ayalon Mall in Ramat Gan. The extra floor will add 10,000 square meters of space, including 8,000 square meters of commercial space, to the mall.
"Globes": Will you also buy malls?
David Azrieli: "We're constantly looking, and if something interesting turns up, we'll buy."
Does the opening of H&M stores at the Azrieli Mall in Tel Aviv and the Malha Mall in Jerusalem give you an edge over other malls?
"Absolutely. You also have to look at the political aspect. 8-10 years ago, we begged but couldn’t get the brand to come to Israel. Now, despite all the talk about a boycott in Europe and at universities, every global brand brings a blessing to the country, and not just to a mall and shoppers. We understand that H&M also helps others."
You're about to raise NIS 2.5 billion. Will you use the proceeds to diversify?
"We'll use the money for the good of the company and the country."
Commenting on his investment in Bank Leumi (TASE: LUMI), Azrieli said, "We made a strategic investment in Bank Leumi. We believe in the bank, and I believe that this will be a good investment. We have no intention of selling the holding." Azrieli Group has made a 60% profit, after buying 4.83% of the bank in May 2009 from Cerberus Capital Management LP and Gabriel Capital Management at NIS 10.50 per share. The bank's share is now worth NIS 17, which gives the stake a value of NIS 1.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2010
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