Paz offers three plots valued at over 100 million NIS in Tel Aviv.
The value of Paz’s plot on which the Ben Zvi, Salameh, and Abu Kabir gas stations are located is estimated at 100 million NIS in cash or 130 million NIS as part of a combined transaction. (עסקת קומבינציה)
These are plots with building rights for commerce, employment, and housing.
Paz plans to sell the plots in three ways: a cash transaction of 100 million shekels, a combined operation valued at 130 million shekels, or the realization of rights through construction services. The Company strives to continue operating the gas stations even after the construction on the plots is implemented, as stipulated in the sale agreements. According to Paz’s reports, the sale of the plots for an amount of 100 million NIS will reflect a profit of 45 million NIS.
These plots may attract the interest of income-producing real estate companies, residential units, and, of course, purchasing groups operating in Tel Aviv. The plots have building rights for: An employment and commercial tower with an area of 26,000 square meters or a residential tower of 24,000 square meters. Paz’s share is 15%-17% and the rest belongs to other owners.
The two additional plots include approved building rights: 46 building rights for a 10,000 square meter building, of which 7,800 square meters are employment areas and 1,600 square meters are commercial spaces. On the plot where the Paz Abu Kabir station operates on Herzl Street, 188 building rights are approved for the construction of 5,500 square meters of employment, 800 square meters of commercial spaces, and 440 square meters of sports center next to the gas station.
The company notes that so far two offers have been received, one for one of the stations and the other for all three stations. Yona Fogel, the CEO, in a conversation with “Globes,” stated that “the first two options are more suitable for Paz’s activity, but each case will be examined based on economic results,” he said.
Fogel added that “Paz owns and manages 21,000 m² of properties such as commercial buildings leased to stores, restaurants, etc., in 50 commercial areas. Outside of these areas, we wish to transform 150,000 square meters of land into income-producing zones, with Paz’s advantage being historically valuable areas in central locations, as well as knowledge and experience in managing productive properties.
Paz is the fuel company with the largest number of stations located on land it owns. Among Paz’s 275 gas stations, 104 are located on land that belongs to it (11 of which also have other landowners). The stations also include 244 Yellow convenience stores, totaling 59 commercial areas, of which 21,500 m² of commercial spaces belong to the Company, leased to third parties and generating rental and management fees.
