Ari Real Estate Bids NIS 562 Million for Delek's Share in Tel Aviv Towers
Tsahi Abu's Ari Real Estate has bid NIS 562.5 million for Delek Automotive's 50% stake in the Vitania Tel Aviv towers. Co-owner Vitania, led by Rami Unger, plans to exercise its right of first refusal to block the acquisition.
Ari Real Estate, controlled by Tsahi Abu, is the company behind the non-binding NIS 562.5 million offer to acquire Delek Automotive's (Delek Rechev) 50% stake in two towers within the La Guardia project in Tel Aviv, sources close to the matter report.
Delek Automotive, led by Gil Agmon, disclosed on Wednesday that it received an offer for its equal share in the towers, which it co-owns with Vitania. The properties house Delek Automotive's flagship showrooms for Ford, Mazda, and BMW.
Vitania Prepares to Block the Deal
The offer by Ari Real Estate values the joint towers at NIS 1.13 billion. Under the proposed terms, Delek Automotive would continue to lease back its car showrooms. Ari Real Estate has declined to comment on the bid.
However, the transaction faces a major hurdle. Vitania, a publicly traded developer controlled by Rami Unger (the official Kia importer in Israel), holds a right of first refusal and intends to exercise it.
While Vitania officially informed the Tel Aviv Stock Exchange that it is evaluating the deal, including funding options and a potential rights offering, sources confirmed to Calcalist that the company fully intends to block Ari Real Estate's entry. Vitania, currently traded at a market cap of NIS 800 million, will require a substantial capital raise through a rights issue, in which Unger is expected to participate. Vitania has 60 days to formally respond to Delek Automotive.
The Scale of Vitania Tel Aviv
The "Vitania Tel Aviv" mixed-use project features three 40-story office towers located at the southern entrance of Tel Aviv's central business district. The massive development includes:
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125,000 square meters of office space;
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10,000 square meters of commercial space;
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Two sports halls built as a public benefit for the Tel Aviv Municipality;
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130 residential apartments.
Current high-profile tenants in the complex include gaming giant Moon Active and the Gornitzky & Co. law firm. Bank Hapoalim is also set to move its headquarters to one of the three towers, which it purchased in 2021 for NIS 970 million. Delek Automotive's holdings, managed via its subsidiary Delek Rechev Motors (D.M.R.), cover the remaining two buildings.
Tsahi Abu's Capital Deployment
This bid is part of a broader expansion strategy by Tsahi Abu. In July, Ari Real Estate signed an agreement to acquire a controlling 33% stake in G City from Chaim Katzman for NIS 661 million. That deal collapsed after Abu attempted to bring in Yishpro (owned by Kidan Dahari and Yaron Adiv), leading Katzman to pull out over structural disagreements.
Despite the setback, Ari Real Estate successfully raised NIS 455 million from institutional investors, with Abu personally injecting an additional NIS 110 million through two rights offerings. This liquid capital remains on the company's balance sheet as it actively seeks prime real estate opportunities, such as the Vitania towers.
