As the crisis at Hebrew daily "Ma'ariv" escalates, its former controlling shareholder for 20 years, Israel Land Development Company (TASE: ILDC), controlled by Ofer Nimrodi, is demanding the immediate payment of hundreds of thousands of shekels in rent arrears owed on Beit Ma'ariv in Tel Aviv. Half of the building, owned by Israel Land, is leased to "Ma'ariv", and rest is leased to other companies.
In 2009, when Israel Land sold Ma'ariv Holdings Ltd. (TASE: MARV-M) to Zaki Rakib, Beit Ma'ariv was sold to Israel Land in a buy-and-lease back deal. Under the lease, Ma'ariv pays NIS 35 per square meter per month, amounting to NIS 212,000 a month.
In 2011, the lease was extended with Ma'ariv's new owner, Discount Investment Corporation (TASE: DISI), a unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, for four years. The rent has apparently not been paid for months.
IDB declined to comment on the report.
Israel Land said in response, "Israel Land's properties division sent a memo to Ma'ariv on the matter. Israel Land's management is aware of "Ma'ariv's" serious condition, and understands that payment may arrive late, if at all."
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2012
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