Sources inform "Globes" that Azrieli Group Ltd. (TASE: AZRG) is at an advanced stage of negotiations to buy Tel Aviv's Sarona Market from Gindi Holdings at a valuation of NIS 400-500 million.
Sarona Market, which opened in July this year, is an indoor culinary market with 89 businesses. The market is modelled on similar markets around the world, such as the Eataly markets in Manhattan, Turin, Rome and Tokyo.
A variety of restaurants, bakeries, and stands selling candy, spices, fruit and vegetables, wines, cheeses, fish and so forth, operate on the 8,700 square meter site near IDF headquarters in central Tel Aviv. 70% of the stores sell raw materials and equipment, while 30% are dining areas and food stands, including farmers' stands.
Sarona Market CEO Sharon Moman stated in the past that rents on the site were NIS 300-400 per square meter for large businesses, and that small businesses and market stands pay according to size and location.
Since it opened, the food market had enjoyed success, with consistently lively buyer traffic.
Melisron Ltd. (TASE: MLSR) conducted negotiations in the past to buy 50% of Sarona Market, but the negotiations did not mature into a deal.
Published by Globes [online], Israel business news - www.globes-online.com - on November 26, 2015
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