The Arena Mall in Herzliya was sold for NIS 335 million (before VAT) earlier this week. Reality Investment Fund purchased the property from the Arena Group.
The 45,000-square-meter mall, located on the city’s southern beach by the scenic marina, has 25,000 square space of leasing space with the rest dedicated to service areas. The property also includes an underground parking lot with a 1,350-vehicle capacity.
The deal signed Tuesday sets out the payment plan for the property to be completed in the coming year. Reality Investment Fund intends to finance the purchase using its own funds as well as a loan from a bank or an institutional investor.
Sources informed “Globes” the negotiations for the purchase lasted three months and the buyer will continue operating the mall while advancing plans for its renovation. The renovation will either seek to better exploit the existing space or to rezone the area to expand the potential uses for the complex.
The existing zoning limits the area to tourism-related commercial areas and offices; the mall does not have any outstanding building rights. The available data on the property shows its annual rental income is NIS 16 million with a 75% occupancy rate.
Reality Investment Fund will be paying significantly less for the property than previous buyers. In 2007, Financial Leverages bought it for NIS 546 million from Mordechay Zisser and tens of millions more have been invested in the mall since.
The seller was advised by Adv. Amnon Lorch and David Akrish from Yigal, Arnon & Co. The buyer was represented by Adv. Moshe Hardy from Herzog, Fox & Neeman.
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2016
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