Giant deal for Gindi: selling property for 400 million shekels
The company, which has already sold 700 apartments in Sde Dov, is selling the commercial portion: REIT 1 will acquire approximately 12,400 sqm of retail and office space and about 127 parking spots.
Gindi Holdings has signed an agreement with REIT 1 for the sale of all retail and office spaces in the VOGUE project, which Gindi Holdings is developing in the Sde Dov district of Tel Aviv, for approximately 400 million shekels plus VAT.
As part of the deal, REIT 1 will acquire approximately 5,000 sqm of retail space, approximately 7,400 sqm of office space, and about 127 attached parking spots. With this, the fund will acquire the entire planned income-generating component of the project.
At the time of signing the agreement, REIT 1 paid Gindi Holdings 80 million shekels. The remainder of the consideration will be paid upon the occupancy of the spaces, bringing the total consideration for the deal to approximately 400 million shekels plus VAT. Occupancy is expected to take place in about 5–7 years, depending on the pace of construction and the completion dates of the various plots in the project.
The deal is being signed about a year and a half after Gindi Holdings acquired the two plots in March 2025, as part of an Israel Land Authority tender in Sde Dov. It should be noted that the company has already sold 700 housing units, with only a few penthouses remaining. On these plots, the company is promoting the VOGUE Sde Dov project, which includes 708 housing units alongside the retail and office spaces now sold to REIT 1. A significant portion of the housing units in the project has already been sold.
Unlike selling shops or office spaces separately to different investors, the deal consolidates the entire income-generating area of the project under one ownership. REIT 1 will be responsible for maintaining and managing the spaces, including determining the tenant mix in the commercial complex and office areas.
For Gindi Holdings, the deal allows the company to sell the entire commercial and office component of the project in one transaction, while transferring ownership and future management of the income-generating spaces to an entity specializing in the field. Simultaneously, the company continues the construction and marketing of the 708 housing units in the project.
Advocate Asaf Adler, Chief Business Officer of Gindi Holdings, stated in response:
"For us, it was important that all retail and office spaces in the project be held and managed as a single unit by a large, professional, and experienced entity like REIT 1, based on a long-term view of the complex. REIT 1 is a natural partner for this move, thanks to its experience in holding and managing income-generating properties and in building a high-quality mix of retail and office tenants who will bring significant value to the project. We are happy with the deal and the connection between the two companies, and we believe it will contribute to the development of the commercial and office component of the project and create significant value for the project alongside the residential complex."
