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The Israel Land Development Corporation Malls (ILDC Malls) reported on Sunday that it is buying a shopping center in Ontario, Canada for $17.5 million. The commercial center is fully rented out and annual rents amount to $2 million. The center has 15,000 square meters (437,400 square feet) of built-up space on a 500-dunam (125-acre) stretch of land.

The finalization of the purchase is subject to approval by several regulatory agencies. In addition, ILDC still needs to obtain a bank loan to cover the deal, and the final contract has not yet been signed.

This is ILDC Malls's first venture beyond Israel's borders. The company, which is controlled by the Nimrodi family, initiates, develops and manages shopping malls and commercial centers. ILDC Malls owns 67 percent of the holdings in the Shiv'at Hakochavim (Seven Stars) mall in Herzliya, as well as a commercial center in Re'ut and 51 percent of the commercial center at the Yarkon intersection in Gush Dan. All the properties at the malls are rented and are fully operational.

The Shiv'at Hakochavim mall, which opened at the end of the first quarter of 2000, has been a great success, quadrupling the company's revenues to NIS 26.5 million in the first half of 2001.

The mall's rental income amounts to NIS 3.5 million per month. ILDC Malls' income from its other two commercial centers has remained unchanged since the beginning of 2000.

The company's net profits for the first half of 2001 totaled NIS 600,000. The company spent NIS 14 million of its revenues in the first half of 2001 on building maintenance, leaving it with gross profits of NIS 12 million. ILDC Malls is currently trading on the Tel Aviv Stock Exchange at a market value of about NIS 40 million.