The real estate investment trust (REIT) Sella Capital Real Estate Ltd. (TASE: SLARL) announced today that it had finalized the purchase of Jerusalem's HaPisga Mall for NIS 224 million. Transaction expenses and taxes will increase this sum to NIS 240 million.
Hapisga Mall is a central Jerusalem mall, frequented mainly by Pisgat Zeev residents. It has two commercial floors above the ground floor, with a total 9,020 square meters of commercial space and three storage floors, which also contain 273 parking spaces. The net operational profit for this year, for all the income-producing (fully occupied) space is predicted to reach NIS 16 million which constitutes a 7.15% return. At present, 92% of the property is rented, to 60 leasers, for periods of up to several years. Leasers include Shufersal Ltd. (TASE:SAE), Superpharm, Home Center, Israel Postal Company, Tzomet Sfarim, Fox, Aldo, Bank Hapoalim (TASE: POLI), Bank Yahav for Government Employees Ltd. and more.
The company has used its own cash to pay an advance payment in trust of NIS 145 million, and the rest within 30 days, after liens on the property are removed.
One month ago, the fund completed a financing round of NIS 250 million, mainly raised from leading financial institutions. This is Sella Real Estate's second deal recently, after its August 21 acquisition of a logistic center in Ashdod''s Park Hamea for NIS 67 million. Sella Capital CEO Gadi Elikam said, "The acquisition of this property matches the company's strategy both in terms of investment in profitable commercial assets, and in terms of geographical diversity."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2016
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