In a huge deal in Israel’s real estate sector, Ari Real Estate (TASE: ARIN), controlled by Tzachi Abu, has acquired a 26% controlling stake in income producing real estate company G City (TASE: GCT) (formerly Gazit Globe), from Chaim Katzman’s Norstar Holdings (TASE: NSTR) for NIS 661 million. The purchase reflects a company valuation of NIS 2.55 billion for G City.
As part of the move, Ari Real Estate will pay an average price of NIS 14.95 per share, representing an upside of more than 30%$ on its current share price and current market cap of NIS 1.96 billion. In addition, as part of the deal, Ari Real Estate has been given an option to buy a further 7% of G City shares, for NIS 192-204 million, after which Ari Real Estate's holding would be 33%, and Norstar's holding would be 21%.
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In addition to the sale of the shares, the deal between the parties also includes a joint commitment to lead a capital raising in G City of about NIS 1 billion in order to support the company. The volume of capital injection by the two companies as part of the raising is expected to be approximately NIS 540 million.
G City develops, manages, and leases mixed-use properties in Israel and abroad.
Published by Globes, Israel business news - en.globes.co.il - on July 5, 2026.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.
