Israel’s Gazit Said to Seek Home Market Exit, Lure Buyers

Updated on

Gazit-Globe Ltd., which manages about $20 billion of commercial real estate assets, has started to approach potential overseas buyers for the sale of its Israel unit, according to two people familiar with the matter.

The Tel Aviv-based company has received initial requests for information from interested parties in Europe and North America, the people said, asking not to be identified because the information isn’t yet public. Gazit Israel’s assets, which include 12 shopping malls, are valued at between 3.3 billion shekels ($853 million) and 3.5 billion shekels, they said.

Gazit is putting its Israel unit up for sale as the real estate investment company focuses on adding more property in major cities in the Nordic region, Latin America and Europe. The company’s Citycon Oyj unit in May acquired Norwegian shopping-center owner Sektor Gruppen ASA for about 1.5 billion euros ($1.67 billion). The purchase makes Gazit the largest listed retail owner in the Nordic region and the third-biggest in Europe by gross assets, according to the company.

The shopping-center developer has hired Citigroup Inc. to manage the Israel sale. Zamir Dahbash, a spokesman for Gazit, declined to comment when contacted by Bloomberg.

Gazit shares rose 1.1 percent to $12.63 at 10:33 a.m. in New York.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE