The Gaon Group intends to sell its real estate interests to an as-yet-undisclosed third party, the company announced Sunday. Gaon Holdings Incorporation will thus become a "shell firm" meaning it will remain on the Tel Aviv Stock Exchange roster, but will cease all trading activity,
The groups has not publicized the sale's end-price. Gaon Holdings' market value is assessed at NIS 25.7 million (around $6.5 million).
The company's real estate dealings began in June 2007 and, at that time, were centered on two primary transactions. Fifty percent of the company's real estate holdings are invested in a property in Frankfurt and a building in Tel Aviv.
Shai Preminger, CEO of Gaon Holdings, said the real estate sale was an expedient business move for the Gaon Group: "Just as we knew how to raise NIS 700 million for companies in the group prior to the economic crisis, now we continue to make our operation more efficient, which is the right way to deal with this crisis."
"This administrative decision allows the Gaon Group to survive the current crisis in a good way compared to other holding companies in Israel, and even to demonstrate profit," he added.
"The steps the group is taking to reduce its real estate activity are part of the group's decision to focus on three arenas within "traditional economy" – retail and trade, Agro and Clientech, and financial services," he explained.
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