Melisron Ltd. (TASE: MLSR) real estate group will become controlling stakeholder in Ofer Park in Petah Tikvah. Today (Wednesday), the company reported that it has signed an agreement to increase its stake in the park by acquiring a further 24% for NIS 192 million, NIS 160 million in cash and NIS 32 million in Melisron shares, according to their market value. At present, before the completion of the deal, Melisron has a 50% stake in the Azorei Malal company, which owns the rights to the existing park and to Park Ofer B, currently undergoing construction.
After the deal is completed, Melisron's stake will increase to 74%, while Moshav Kfar Malal will maintain a 26% holding. The completion of the deal is subject to fulfillment of a number of contingent conditions.
Petah Tikvah's Ofer Park is a high-tech park containing 88,000 sqm of space for leasing, with an occupancy rate of 100%. Key leasees include IBM, Intel, Marvell, Cellebrite, Polycom, ClickSoftware and more. As of March 31 2016, the park's book value was estimated at NIS 1.24 billion. The representative NOI in 2016 is NIS 90 million.
Melisron, controlled by Liora Ofer and managed by Avi Levy, has become the second largest local real estate giant, with shares jumping over 30% in 2016 and market value skyrocketing to NIS 7.1 billion. Melisron is considered a key player in the local mall market, owning 25 properties in Israel, the most notable of which are the Ramat Aviv Mall and the Kiryon in Haifa Bay, in northern Israel.
Melisron CEO Avi Levy said, "Melisron considers this move to be an important step in enlarging the company's operations, as part of our ambition to continue expanding."
Published by Globes [online], Israel business news - www.globes-online.com - on July 20, 2016
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