REIT Israel in Talks to Buy Maaleh Adumim Mall

M. Aviv might get NIS 90 million for the mall, whose cinemas still stand empty

M. Aviv stands to benefit from the sudden mad race among real estate investment companies to buy shopping centers. TheMarker has learned that M. Aviv, owned by developer Mordechai Aviv, is in advanced negotiations to sell the Adumim mall in Maaleh Adumim to the real estate company REIT Asset Management Israel for NIS 90 million.

The Adumim mall is the first shopping center to be built beyond the Green Line. Its cornerstone was laid in late September 1996 and some $17.5 million were invested in its construction, according to the reports of the companies at the time. The mall is situated in the center of Maaleh Adumim, next door to the new City Hall. Insofar as is known, the entrepreneurs have the right to build two office buildings and a hotel in the areas as well.

The mall occupies 27,500 square meters on two floors and has about 80 stores. The Co-Op Jerusalem supermarket chain rents a quarter of the space on the ground floor, where it has a Mister Zol outlet. The mall typically generates rent anywhere from $10 to $30 per square meter a month, though the restaurants pay a higher rate of $45 per square meter. The mall used to have four cinemas with 650 seats but they closed after the intifada broke out. The area freed by Israel Theatres remains empty.

M. Aviv manager Zvi Frank commented that the company had received an offer for the mall, but had not had time to examine it. REIT Israel manager Amir Biram commented that the company declared its intention to buy shopping malls in Israel and does not report on negotiations before their completion.