Big Shopping Centers has purchased the esteemed Seven-Star House in Herzliya from Beit HaZhav for a sum of NIS 225 million, reflecting the net value of the property on the company's books as of the conclusion of 2022. The acquisition, disclosed by Beit HaZhav today, marks a strategic move in the local real estate market. Big Shopping Centers has refrained from commenting on the news at this time.
The payment for this prestigious property will be structured with an initial installment of NIS 169 million upon the completion of the deal, and the remaining balance will be settled upon the receipt of a building permit for future expansion of the property.
At present, the Seven-Star House boasts approximately 102 housing units, but Beit HaZhav has unveiled ambitious plans to enhance and expand the facility. The proposed project envisions an increase in the number of sheltered housing units to 220, along with the addition of construction areas for housing units and nursing facilities. Moreover, there are plans to enlarge common areas accessible to all residents, including commercial spaces. In 2022, the Seven-Star House generated an income of approximately NIS 20 million.
The Seven-Star House stands as one of the two assisted living homes operated by Beit Zahav in Israel, with the other being the Gil Gil Zahav in Tel Aviv. In addition to their operations in Israel, the company also engages in the nursing home sector in the United Kingdom through the publicly-traded Raved company.
Following the announcement of this transaction, Beit HaZhav's stock surged by an impressive 14% in Tel Aviv trading, pushing the company's overall value to approximately NIS 200 million.
It's worth noting that the completion of this deal is contingent upon approval from the competition authority, underscoring the buyer's already-established presence in the industry. Big Shopping Centers, currently valued at approximately NIS 7.8 billion, ventured into the subsidized housing sector less than a year ago. In December 2022, the company secured a tender from RMI for the purchase of approximately 12 dunams of land dedicated to the construction of 250 units of subsidized housing, along with roughly 3,000 square meters of accompanying commercial space, all in memory of Jacob.
This news story captures the essence of the acquisition of the Seven-Star House by Big Shopping Centers from Beit HaZhav, highlighting the financial aspects of the deal, the property's current status, future expansion plans, and the impact on both companies involved.