Bronfman Fisher Investments Ltd. subsidiary Isralom Properties Ltd. (TASE:ILOM) and British-Israel Investments Ltd. (TASE: BRTS), controlled by Leo Noe, have jointly bought the IKEA Israel store in Netanya for NIS 175 million from Blue Square Furniture Ltd., a subsidiary of Bronfman Fisher Investments, and the IKEA franchisee in Israel. Isralom will own two-thirds of the building, and pay NIS 116.7 million; British-Israel will own one-third through Azo-REIT Commercial Centers Ltd., and pay NIS 58.3 million. The IKEA Israel store has 23,715 sq.m. of main and service space. Matthew Bronfman and Shalom Fisher control Bronfman Fisher.
Since Bank Hapoalim (LSE: BKHD; TASE: POLI) has a NIS 125 million lien on the property, it must consent to the transfer of its loan. Isralom will bear two-thirds of the loan, amounting to NIS 83.3 million; British-Israel bear one-third, or NIS 41.7 million.
IKEA Israel’s rent totals NIS 12.8 million a year: Isralom will receive NIS 8.5 million and British-Israel will receive NIS 4.3 million.
In a separate transaction, British-Israel has bought a 13,000-sq.m. shopping center in Nazareth for NIS 137.5 million, also through Azo-REIT. Payment will be made in five equal annual payments of NIS 14.5 million each. The shopping center has 30 tenants, including Blue Square Israel Ltd. (NYSE: BSI; TASE: BSI) supermarket (controlled by Bronfman Fisher), Super-Pharm Drugstores Ltd., Office Depot, and ACE Marketing Chains Consumer Products Ltd. Rent totals NIS 9.6 million a year.
Published by Globes [online], Israel business news - www.globes.co.il - on August 12, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007