David Azrieli's business group has pulled out of negotiations to buy the Ramat Aviv Mall in Tel Aviv from Africa Israel. The putitative deal was to have included several other shopping centers as well, though Ramat Aviv was considered to be the "crown jewel".
A source in the know claims the Azrieli Group stopped the talks because the price Africa Israel wanted was too high, and it wouldn't come down.
The source says that the initial negotiations were based on a yield rate of 5%-5.5% on the properties, with Ramat Aviv Mall valued at NIS 2.2 billion - far more than the NIS 1.2-1.3 billion assessment provided by real estate appraiser Greenberg Olpiner Shelef after the publication of Africa's 2007 financial reports.
Ramat Aviv Mall was due to be part of a package deal that included the sale of other malls in Africa's portfolio - Savyonim in Yehud, Haifa's City Center mall and the commercial center in Savyon. Ramat Aviv Mall is owned by Africa Properties (73%) and Migdal Insurance & Financial Holdings (27%). An Africa Properties spokesperson said the company had nothing to add to its previous announcement to the bourse. The Azrieli Group declined comment.
Want to enjoy 'Zen' reading - with no ads and just the article? Subscribe todaySubscribe now