Press Coverage

The sale will lower the Ganden-IDB group’s obligo in the banks by NIS 1.4 billion.
Today, six months after reporting an agreement for the transferring ownership of Azorim Properties, British real estate tycoon Leo Noe and Ganden controlling shareholder Nochi Dankner closed the deal. A company controlled by Noe signed the agreement for the acquisition of Azorim Properties from Ganden for NIS 400 million. NIS 360 million of the sale price will be paid immediately, and the rest will be spread over the next two years. The deal is the largest real estate transaction in Israel in recent years. Noe’s company will finance the acquisition mostly with credit from First International Bank of Israel and Bank Leumi which previously financed Ganden’s acquisition of Azorim Properties from Azorim Investment, Development and Construction , and through an offer to purchase from the public. The sale of Azorim Properties, one of Israel’s largest income-producing real estate companies, is designed to lower the Ganden-IDB group’s obligo in the banks. A Ganden source said that the sale would reduce the group’s obligo by NIS 1.4 billion: NIS 350 million in debt to First International for the original acquisition of Azorim Properties, and the rest for the latter’s debts, mostly to Bank Leumi. Ganden-IDB’s debts are currently estimated at NIS 9 billion, substantially lower than its bank debt as of the beginning of 2003.

Nochi Dankner's Ganden group will today be wrapping up the sale of Azorim Properties to the REIT Israel fund, headed by British investor Leo Noe and Excellence-Nessuah, TheMarker has learned. The transaction reportedly prices Azorim Properties at NIS 400 million. The buyers are borrowing the money mainly from First International Bank and Bank Leumi. FIBI has already approved the financing, while Leumi will only be discussing the issue next week. The parties first reported the negotiations in October 2003. At the time, Ganden was insisting on an NIS 450 million company valuation for Azorim Properties, but it had to compromise. Ganden acquired Azorim Properties in several stages. It began by buying 24% of the company in June 2001, then exercised two options in February 2002 and increased its shareholding to 83.3%. Four months later Ganden offered to buy the public's holdings in the company. Upon completing the process in July 2002, it delisted Azorim Properties. Altogether Ganden paid about $100 million for all the shares. As it withdrew NIS 40 million dividends, it is coming out of the investment roughly even. Noe, 50, owns Asset Management REIT, which runs the Noe family's mutual funds. It is considered one of Europe's five biggest real estate funds, with assets of over $3 billion. REIT Israel was established in early 2003, to invest in Israeli properties. Its shareholder equity totals $50 million. Excellence-Nessuah owns 5% of its shares.

Nochi Dankner continues his cash campaign: sold off Azorim Properties, among the largest property companies in Israel, to the holding company REIT, controlled by the British businessman Leo Noe. Leo Noe, the British property businessman and controlling shareholder of the holding company REIT, acquired the control of Azorim Properties from the Ganden group for NIS 400 million. REIT UK manages the trust funds of the Noe family. The company is considered as one of the top five property companies in Europe with an asset portfolio of over USD 3 billion. Leo Noe, a Zionist Jew, is one of those Brittons who enthusiastically support and contribute to Israel. REIT Israel was established early 2003 as an investment fund, with the objective to invest in the Israeli economy. The fund possesses USD 50 million in own equity. The controlling shareholders in the management company of the fund are REIT UK and Excellence Investments. Azorim Properties undertakes the development of projects for office, commercial and industrial spaces to be let, in Israel and abroad. The company manages about 250,000 sq.m. of income-producing assets (commerce, offices, hi-tech, industry) and an additional 180,000 sq.m. in the planning, development and construction stages. The company’s rental revenue stands at about NIS 150 million a year. Among the company’s main assets: the hi-tech Park Azorim and the residential project Mishkenot Clal for the elderly. Ganden is held by the businessman Nochi Dankner. Dankner acquired about five months ago the control of the IDB concern, which is the largest business conglomerate in Israel. Dankner took out large loans in order to complete the deal and he has been frequently realizing assets in his control in the last months. “Upon completing the Azorim Properties deal, the ambition of the REIT group is to invest even more in the Israeli property market”, said the businessman Leo Noe, pursuant to the deal’s completion. “I am proud that Leo Noe decided to invest in Israel by means of Azorim Properties”. Noe and Bisker said today, while signing the agreement, that they will collaborate in the property area in the next years. The deal was reached by the mediation of advocate Ram Caspi, advocate Levi Amitai, the Dankner-Lusky law offices, on behalf of Ganden, and the advocates Shiri Shaham, Hagit Bavly and David Osborne from the Yigal Arnon law offices, as well as Shmuel Barashi (CPA) from BDO/Ziv Haft the certified public accountants, on behalf of REIT.

Ganden will finance NIS 60 million of the acquisition cost of Azorim Properties – REIT also negotiates finance with the banks The Ganden group will finance the deal to acquire control of Azorim Properties to the REIT group. At the end of the week REIT Israel has agreed to acquire Azorim Properties from Ganden for the amount of NIS 400 million. Maariv learned that the scope of the finance has been determined as a NIS 60 million long-term loan. This consideration is deemed to be part of the own equity which the group will present to the banks, as a pre-condition to receive an additional loan to finance the acquisition of the company.

Ganden will finance NIS 60 million of the acquisition cost of Azorim Properties – REIT also negotiates finance with the banks The Ganden group will finance the deal to acquire control of Azorim Properties to the REIT group. At the end of the week REIT Israel has agreed to acquire Azorim Properties from Ganden for the amount of NIS 400 million. Maariv learned that the scope of the finance has been determined as a NIS 60 million long-term loan. This consideration is deemed to be part of the own equity which the group will present to the banks, as a pre-condition to receive an additional loan to finance the acquisition of the company.

Noe, who controls Europe’s REIT Asset Management property group, says he plans to invest further in Israeli real estate. British real estate investor Leo Noe, who controls Europe’s REIT Asset Management property group, has bought Azorim Properties from the Ganden group for NIS 400 million. The deal was signed following rapid negotiations in which Ganden originally asked for NIS 450 million. REIT, with assets of $3 billion, is considered one of the top five real estate firms in Western Europe, with investments in England and other countries. Noe has experience with real estate deals in Israel, and is a strong supporter of the country. Leo Noe said today, “After completing the Azorim Properties deal, the REIT group plans to expand its investments in Israel’s real estate market.” Azorim Properties’ activities in Israel will be managed from now on through REIT Israel, an investment fund established at the start of this year with $50 million in shareholders’ equity. REIT Israel is owned by REIT Asset Management UK and by other shareholders, including Amir Biram, CEO of REIT Israel, and Excellence Investments. The sale of Azorim Properties will help the Ganden group to repay its banks a large part of the loan it received a few months ago to finance the acquisition of IDB Holdings. Nochi Dankner, who controls Ganden, acquired control of Azorim Properties from Azorim two years ago, and later had the company delisted from the Tel Aviv stock exchange. Dankner bought the company at a $100 million company value. Most of Azorim Properties’ current activity is in development projects for office, commercial, and industrial space for rent. The company manages 400,00 sq.m. of income-producing properties, with an additional 180,000 sq.m. in the planning, development, and construction stages. Through its Mishkenot Clal subsidiary, Azorim Properties is also active in developing constructing, and managing housing for senior citizens. The company also owns managing companies for office, commercial, and hotel apartment buildings.

Nitzba Holdings announced to the Stock exchange that REIT Asset Management (Israel), Granit Hacarmel Investments, Gmul Investments, and an investors group represented by lawyer Saul Bergerson have submitted bids to acquire shares of its holding company Nitzba Settlements. At this stage Nitzba Settlements examines the bids received and the bids to be considered for negotiation will be presented to the Board of Directors.
REIT AM Israel is the only company to submit a 100% cash offer to acquire control of Nitzba Holdings, the real-estate company of Egged.
Nitzba assets include central stations, shopping malls, commercial and transport centers, office buildings as well as numerous assets and projects to be developed.

The British investor Leo Noe lastly started to examine the acquisition of Israeli companies. Noe is one of four participants who deposited a USD 2m security to compete in the public tender to acquire Nitzba Settlements from Egged members and pensioners. The acquisition of Nitzba is likely to be done at a valuation of more than USD 120m.
Leo Noe is the largest shareholder of the British income-producing real estate company REIT Asset Management, which is considered among the top five real estate in the UK. Maariv was informed that for his operation in Israel Noe set up a local company called REIT Asset Management (Israel) Ltd. Amir Biram, CPA, who served up to now as one of the senior directors at investment bank Excellence, was put in charge of running the new company.
Excellence Investments will serve as Noe’s investment banker in Israel, while legal services will be provided by the law offices of Yigal Arnon & Co.
The new company is interested in investments in the field of income-producing real estate and the objective is to acquire a large Israeli company through which further acquisitions can be made. Noe’s investment could reach in the hundreds of millions US dollars. Noe’s name was mentioned about three years ago as one of the candidates to acquire control of the real-estate company Amot, which was not sold in the end.