Tzachi Abu's week: Buys land in Be'er Sheva and sells half of a future power plant

Businessman Tzachi Abu, through his company Ari Real Estate, signed a memorandum of principles to purchase an industrial complex of about 407 dunams in Be'er Sheva for NIS 110 million, while simultaneously selling, together with Jackie Ben Zaken, 50.1% of a future power plant in Menashe for NIS 370 million.

A busy week for businessman Tzachi Abu: Ari Real Estate, which he controls, signed a memorandum of principles to acquire rights to an industrial complex of about 407 dunams in Be'er Sheva from the companies Adama (formerly Makhteshim) and Likord, for NIS 110 million. At the same time, Ari Real Estate and its partner Jackie Ben Zaken reported the sale of 50.1% of the future power plant "Orot Yitzhak" — expected to be established in the Menashe Regional Council — for NIS 370 million. The land in Be'er Sheva currently houses factories of the two sellers, and the detailed agreement will include provisions for treating existing soil contamination, but no details on remediation costs have been provided at this stage. Meanwhile, Ari Real Estate intends to sign lease agreements with Likord for five years and with Adama for two years, at annual rents of NIS 7.7 million. In the power plant deal, after the sale, Ari Real Estate will hold about 30% of the plant (down from 60% today) while 20% will remain with Ben Zaken. The deal values the project at up to NIS 1.46 billion, with total profit estimated at NIS 330 million.