Gad Zeevi, who built the Grand Canyon shopping mall in Haifa, which he also owned in the past, has lost his share of the mall after failing to meet a repayment on a loan he took two years ago, according to a notice to the Tel Aviv Stock Exchange from his partner in the mall, British Israel, owned by Melisron Ltd. (TASE: MLSR), which is controlled by Liora Ofer.
In January 2011, through a company called Bartura, which he owns, Zeevi borrowed NIS 100 million from British Israel, which owns 70% of the mall, at annual interest of 10%. He repaid NIS 20 million in early 2012. The remainder was due for payment by last Sunday (after Zeevi received a deferment from the original repayment date in June). Zeevi was also supposed to pay an additional NIS 4 million because of the delay in repayment of the loan.
Since the repayment date came and went and Zeevi did not pay the NIS 84 million, all his shares in the mall, and also his shares in the management company, were transferred to British Israel, and it is now the sole owner of the asset.
The Grand Canyon in Haifa has 52.5 thousand square meters of space, and enjoys 98% occupancy. Last year, revenue from it totaled NIS 125 million, 11% more than in 2011. After management fees and other expenses, the profit on the mall was NIS 88 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 24, 2012
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