Globes: Israeli Company Gindi Seeks Institutional Partner In Tel Aviv Sarona Market Project

Sources inform ”Globes” that Gindi Holdings Ltd. is in initial talks to sell part of its Sarona Market project in Tel Aviv to investment institutions. The Sarona Market includes 8, 700 square meters of retail space and parking garages at the foot of the Sarona residential project of 324 apartments in three towers, which Gindi has almost completed. The Sarona Market is due to open in the summer of 2014 and will have 85 businesses. Gindi says that it has already marketed 80% of the space and predicts that, when fully leased, the market will generate net operating income (NOI) of NIS 3.2 million ($0.88K) a month, or NIS 40 million ($11 million) a year.

Gindi values the Sarona Market at NIS 436 million and the parking garage at NIS 94 million, for a total of NIS 530 million ($147 million) . The parking garage will have a monthly NOI of INS 656, 000 ($182million).

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Sarona Market Project

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Gindi Holdings denies that it is seeking to sell stakes in the Sarona Market to investment institutions, and said that it has no interest in selling the project in full, but that it will continue to own a majority stake in it. “Several parties have approached the company to become partners in Gindi Market. The company considers the project as a strategic asset, and it has no intention of bringing in partners at this stage.”Several investment institutions have told “Globes” that, in the past few weeks, Gindi Holdings had approached them to buy stakes in the Sarona Market, at its full value. “This is a very interesting project under development, but Gindi Holdings is asking a price as if the project already had proven income, ” said a source.

Published by www.globes-online.com