Adri-El Initiation and Development has bought 26 supermarkets, mainly in the north of Israel, from the Co-Op Tzafon Cooperative Association, for US$16.7m.
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The largest supermarkets are located in the northern towns of Afula, Kiryat Shmona and Nahariya. Adri-El is owned by Kiryat Shmona businessman Gabriel Adri, according to a report in Globes.
The report notes that Adri-El also has a one-year option to buy Co-Op Tzafon logistic centre in a town north of Haifa for US$3.8m. “If exercised, the deal will total US$20.5m,” according to the report. The logistic centre covers five acres and has 2,000m2 of built-up space.
The report added that Co-Op Tzafon simultaneously signed a 25-year contract to rent supermarkets from Adri-El. Co-Op Tzafon says it is renting 14 supermarkets, worth US$11m, for US$1.1m per year, earning Adri-El a10% yield. The company plans to renovate the other supermarkets, reopening them under the Adri-El management and control.
Globes notes that Co-Op Tzafon maintains that the deal will save the company US$1.6m a year. Until now, Co-Op Tzafon paid Blue Square Cooperative Society US$2.7m a year for 20 supermarkets, paying 10% yield, or 2.5% of turnover, whichever was higher. Co-Op Tzafon will now pay US$1.1m a year, without an alternative method of payment based on turnover.
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By GlobalDataBy Aaron Priel, just-food.com correspondent
