Paz Retail and Energy (TASE: PAZ) reported today that it had sold land and logistics assets for a total of NIS 127 million to Egged Real Estate, the real estate arm of Egged Transportation and Keystone Infrastructure Fund (TASE: KSTN), and Nadav B. Logistics.
Three assets are the subject of the deal. The first is nine dunams of land at Re’em Junction, for NIS 45 million; the second is an 18-dunam plot in the Beersheba Industrial Zone, for NIS 30 million, seven dunams of which are leased to PazGas; and the third is 10.5 dunams of land in the Ashdod Northern Industrial Zone for NIS 52 million. Paz Retail and Energy will post a gain of NIS 35 million from the sale.
Paz chairperson Harel Locker said, “Paz will continue to realize assets that do not serve its core business, in accordance with its strategic plan, at the center of which is focusing and growth in the core businesses in energy, convenience stores and food, alongside the sale of superfluous historical activities and assets.”
In the deal, Nadav B. Logistics is buying from Egged Real Estate 50% of a ten-dunam plot of land designated for the construction of a joint logistics center in the Brosh Industrial Zone in Bet Shemesh for NIS 28 million, bringing the total cost of the land in the tripartite deal to NIS 155 million.
Egged Real Estate and Nadav B. Logistics said that the partnership and the purchase of land from Paz would lead to the construction of four projects at a joint investment of hundreds of millions of shekels. An 8,500 square meter commercial center is planned at Re’em Junction; a 14,000 square meter logistics center is planned at the Ashdod Northern Industrial Zone, and in Beersheva an urban development plan is being promoted that will combine housing, commerce, industry, and public buildings. In the Brosh Industrial Zone in Bet Shemesh, another logistics center is planned, amounting to 12,000 square meters.
Published by Globes, Israel business news – en.globes.co.il – on October 31, 2024.
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