Max Stock announces immediate report regarding a contract for the construction and lease of a logistics center in Southern Israel
CAESAREA, Israel, Sept. 3, 2026 /PRNewswire/ -- Max Stock Limited (TASE: MAXO) (the "Company") today announced that on September 2, 2026, the Company entered into a lease agreement with G.T. (One) Holdings Ltd. (the "Lessor") in connection with the construction of a project with an area of approximately 45,000 sqm in Ofakim, which will serve as an additional logistics center for the Company's operations (the "Logistics Center"), which are currently carried out through two logistics centers and external suppliers.
The Lessor is a private company incorporated in Israel, in which Mr. Ori Max, the Company's CEO and a director, holds 50% of its share capital, alongside third parties unrelated to the Company.
Presented below is a description of the principal provisions of the agreement:
- Period of the lease: 10 years from the handover of possession date, which is expected in December 2028, upon completion of the construction of the Logistics Center by the Lessor (the "Lease Period"). The Lease Period will be automatically extended for 2 additional periods of 5 years each, subject to the fulfillment of the conditions stipulated in the lease agreement (the "Additional Lease Periods"), including a 5% increase in the real rent at the beginning of each Additional Lease Period.
- Primary collateral: To secure its obligations under the lease agreement, upon handover of possession of the leased premises, the Company will provide a bank guarantee in favor of the Lessor in an amount equal to 3 months' rent. VAT at the rate prescribed by law and linkage to the Index will be added to the guarantee amounts, in accordance with the conditions stipulated in the agreement.
- Allocation of use of the Logistics Center: In accordance with the lease agreement, approximately one-quarter of the leased premises is designated for use by the Company for commercial/retail activity (although it may also be used for logistics activity), and the remainder is designated for logistics activity.
- Condition of the leased premises and the Lessor's responsibility: The leased premises are under construction, the permits have not yet been obtained, and the leased premises will be delivered in shell condition. The Lessor is responsible for obtaining the permits required for the Company's designated use, including a permit for non-conforming use and/or an amendment to the city building plan, if and to the extent required. If the permit required for commercial/retail use by the Company is not obtained, the Company will be entitled to the relief stipulated in the agreement until the permit is obtained and will also be entitled to terminate the agreement in respect of the area designated for commercial/retail activity after the agreed period.
- Rent: The Company assesses that the monthly rent is expected to amount to approximately ILS 1.7 million (plus VAT and linkage to the Index, as stipulated in the lease agreement). The rent may increase during the Additional Lease Periods in accordance with the provisions of the agreement (see Section 1 above).
- Investment in the construction and fit-out of the Logistics Center: The Company assesses that the investment required for the works to fit out the Logistics Center for its needs amounts to approximately ILS 20 million.
Approval of the Agreement
Pursuant to the provisions of Sections 270(1) and 272 of the Companies Law, 1999 (the "Law"), the Company's Audit Committee and Board of Directors approved for the Company to enter into the agreement.
Since the transaction was found to have a material effect on the Company's profitability, assets or liabilities, the transaction was classified by the Audit Committee as an extraordinary transaction. The Audit Committee and the Company's Board of Directors found the transaction to be in the Company's best interests for the following reasons:
- The Audit Committee and the Company's Board of Directors examined the terms of the transaction and all the data presented to them, including comparative data regarding similar leased premises and the Company's existing logistics centers, and found that the terms of the transaction, including the consideration stipulated thereunder, are reasonable and fair under the circumstances.
- The Company's logistics requirements have increased concurrently with the development and expansion of the Company's business in recent years. As part of the Company's preparations for the continued expansion and growth of its operations, the Company requires a new logistics center that will support the increase in the scope of its operations and inventory and improve the Company's operational flexibility and cost efficiency, together with the logistics centers currently serving the Company in Shomria and Caesarea.
- The overall terms of the engagement with the Lessor, including the commercial terms, geographical location and operational characteristics of the leased premises in Ofakim, are preferable for the Company compared with the other alternatives examined by the Company.
- Based on the foregoing, the Audit Committee and the Company's Board of Directors were of the opinion that entering into the transaction is in the Company's best interests, advances its business requirements and long-term objectives, and that the consideration stipulated thereunder is fair and reasonable.
The information in this report regarding the date of possession of the logistics center, the date for receiving the permits required for construction of the area, the timing and scope of the Company's investment in the logistics center and the streamlining of logistics costs, is forward-looking information as defined in the Israel Securities Law, 1968, based on the information held by the Company as of the date of the report and the Company's plans and assessments as of the date of the report. There is no certainty that the plans and assessments presented in this report will eventuate and are not necessarily within the Company's control. The Company's plans and assessments may not eventuate, in whole or in part, or may eventuate in a manner materially different to that which has been anticipated.
This is an English translation of a Hebrew immediate report published on September 3, 2026 (Reference no: 2026-01-083156) (hereinafter: the "Hebrew Version"). This English version is only for convenience purposes. This is not an official translation and has no binding force. Whilst reasonable care and skill have been exercised in the preparation hereof, no translation can ever perfectly reflect the Hebrew Version. In the event of any discrepancy between the Hebrew Version and this translation, the Hebrew Version shall prevail.
About Max Stock
Max Stock is Israel's leading extreme value retailer, currently present in 65 locations throughout Israel. We offer a broad assortment of quality products for customers' everyday needs at affordable prices, helping customers "Dream Big, Pay Small". For more information, please visit https://ir.maxstock.co.il
Company Contacts:
Talia Sessler,
Chief Corporate Development and IR Officer
talia@maxstock.co.il
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SOURCE Max Stock Limited
