Five companies have submitted bids to acquire Hatzlahat Yehezkel’s income producing real estate subsidiary Drom Yehuda, whose liquidation was approved not long ago. The liquidators recently published a newspaper advertisement soliciting bids to acquire the company. Participation in the auction requires proof of ability to pay at least $35 million from an accompanying bank, and a NIS 7,500 payment to demonstrate serious intentions.
Five major companies have submitted bids so far. One is Gazit-Globe (TASE: GLOB), managed by CEO Ronen Ashkenazi, which bid $30 million.
Drom Yehuda owns a 6.5-dunam (1.625-acre) corner lot in western Rishon LeZion with 2,900 sq.m. in main and service space. An ACE do-it-yourself (DIY) retail chain outlet currently occupies the property. The lot has 5,800 sq.m. in unused building rights for two upper commercial floors. Assessors valued the property at $3.5 million.
Drom Yehuda also owns a 20,000-sq.m. power center on a 30-dunam (7.5-acre) lot, adjacent to the commercial property leased to ACE. The power center is fully leased to the Cosmos supermarket chain, DIY chain Home Center, and other tenants. This power center has an agreement with the Rishon LeZion municipality guaranteeing its rights to build 25,000 sq.m. of office space. Assessors estimate the value of the power center at $35 million.
The 18,000-sq.m. first stage of a second power center is now being built on a 35-dunam (8.75-acre) lot on a Drom Yehuda-owned property on Avraham Bar St. in the new Rishon LeZion industrial zone.
Published by Globes [online] - www.globes.co.il - on January 17, 2006