Max Stock Announces Lease Agreement for New Logistics Center in Southern Israel
Max Stock Limited (TASE: MAXO) has entered into a lease agreement with G.T. (One) Holdings Ltd., a private Israeli company, to construct and operate a new logistics center of approximately 45,000 sqm in Ofakim, southern Israel. The facility is expected to be completed by December 2028 and will serve as an additional hub for the Company's operations alongside its existing centers. Ori Max, CEO and director of Max Stock, holds a 50% stake in G.T. (One) Holdings Ltd., raising potential conflict-of-interest concerns. The lease is structured to last 10 years from handover with two optional five-year extensions contingent on fulfilling conditions such as rent increases. Monthly rent is estimated at ILS 1.7 million, plus VAT and index linkage adjustments during the extended periods. Max Stock will provide a bank guarantee of three months' worth of rent upon possession transfer to secure its obligations. The logistics center includes designated areas for both commercial/retail activity (25%) and logistics operations. The Lessor is responsible for obtaining necessary permits, including those related to non-conforming use if required by local planning authorities.