Huge deal for the Hajaj Group and Clal Insurance and Finance:
The Hajaj Group has entered into an agreement with Clal for the sale of 75% of land on the prestigious Einstein Avenue in north Tel Aviv, on which 2 shopping centers will be built with an investment of NIS 475 million. The land and the costs of setting up the project, including commercial uses and parking spaces in the projects.
The move is part of the Clal Insurance and Finance Group's strategy in recent years, which continues to increase its holdings in the field of shopping centers.
The first project will be built at the corner of Einstein and Levi Eshkol streets, and will include about 4,400 square meters of commercial space, as well as three residential buildings that will be built above the commercial space and will include 215 housing units. , In addition to 3 residential buildings that will be erected above the commercial areas and will include 300 housing units.
The Tzachi and Ido Hajaj brothers // Photo: Shai Tamir,
Following the acquisition, Clal Insurance and Finance will hold the trading areas in partnership with the Hajj Group, in accordance with the following division: Clal Insurance and Finance - 75% and the Hajj Group - 25%.
The trading areas will be jointly managed by both parties.
The above sale price reflects a sale price of approximately NIS 50,000 per square meter for commercial areas on Einstein Street and for equivalent prices of inferior areas indicated on the first floor or on the minus floor of the project.
The expected profit for the Hajj Group from the transaction is over NIS 200 million, of which a total of NIS 70 million will be recognized in the second quarter of 2022. In addition, the company's free cash flow from the transaction is expected to be NIS 290 million.
The two aforesaid projects are part of a master plan under the authority of a local committee initiated by the company and substantially increased the scope of the rights in the said plots. Additional retail space.
One plot, which constitutes the northeast corner of the street, was sold to entrepreneurs Rami Shabiru and Chen and Itai Gindi at a price of NIS 355 million about a year ago.
It should be noted that Clal Insurance and Finance already has a holding in an active shopping center on Einstein Street in Tel Aviv with the Hajjaj brothers, so that after the establishment of the centers, Clal will jointly own Hajjaj in three shopping centers on this street.
The current shopping centers include quality tenants and brands such as banks, Serpina restaurant, Yaoza restaurant, Super Yoda, Solika, Lachmanina, Maccabi HMO and more.
The entire trade that will be established in the complex is expected to constitute Israel's next shopping boulevard, which will include the most coveted brands in Israel and in the world.
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