Wednesday, August 6, 2008

Sites of israel real estate properties

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Apartments sold and rented

Second-hand apartments sold
Tel Aviv and central region
Givatayim: A 50-sq.m. two-room apartment on Jabotinsky St. was sold for NIS 575,000. A 115-sq.m. four-room apartment with parking on Mishmar Hayarden St. was sold for NIS 1.68 million. A 90-sq.m. three-room apartment with parking on Golomb St. was sold for NIS 1.05 million (Re/MAX).

Givat Shmuel: A 125-sq.m. four-room apartment on Motta Gur St. was sold for NIS 1.34 million. A 120-sq.m. four-room apartment on Harimon St. was sold for NIS 1.19 million. A 110-sq.m. four-room apartment on Ilan St. was sold for NIS 810,000 (Levy Yitzhak).

Rishon LeZion: A 65-sq.m. three-room apartment on Kaplinsky St. was sold for NIS 715,000 (AMG). A 107-sq.m. four-room apartment on Tnu'ot Hano'ar St. was sold for NIS 1.1 million. An 88-sq.m. three-room apartment on Nordau St. was sold for NIS 750,000. A 90-sq.m. three-room apartment on Harav Kook St. was sold for NIS 650,000 (Bank of Jerusalem).

Ness Ziona: A 130-sq.m. five-room duplex on Yosef Feldman St. was sold for NIS 1.53 million. A 127-sq.m. four-room apartment on Givati St. was sold for NIS 890,000. A 107-sq.m. three-room apartment on David Elazar St. was sold for NIS 900,000. A 105-sq.m. four-room apartment on Ha'Imahot St. was sold for NIS 980,000 (Anglo-Saxon).

Jerusalem and environs
Jerusalem: A 70-sq.m. three-room apartment on Handke St., Kiryat Hayovel, was sold for NIS 600,000. An 80-sq.m. three-room apartment on Moshe Dayan St., Pisgat Zeev, was sold for NIS 676,000. A 100-sq.m. four-room apartment in need of renovation on Mishmar Hagvul St., Ramat Eshkol, was sold for NIS 1.4 million. A 105-sq.m. four-room apartment on Yizhar St., Gilo, was sold for NIS 1.28 million (Anglo-Saxon).

Rentals
Tel Aviv and central region

Tel Aviv: A two-and-a-half-room apartment on Basel St., north Tel Aviv, was leased for NIS 2,600 a month. A four-room apartment on Rabbi Hanina St. was leased for NIS 7,600 a month. A three-and-a-half-room apartment on Lohemei Gallipoli St., Yad Eliahu, was leased for NIS 3,500 a month (Madas).

Ganei Tikva: A renovated four-room apartment on Harei Yehuda St. was leased for NIS 3,750 a month. A renovated three-and-a-half-room apartment on Harama St. was leased for NIS 3,200 a month.



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High-rises approved for Jerusalem

Buildings up to 24 floors may be built along Jaffa Street and along King George Street, except for Makor Baruch and the Mahane Yehuda market.


The Jerusalem Regional Planning and Building Commission will support the construction of high-rises in the city center under the new Local Outline Plan. The plan permits high-rises along Jaffa Street from the central bus station at the western entrance to the city to the intersection with King George Street, and along the latter as far as the Plaza Hotel. No high-rises will be permitted along the stretch of Jaffa Street in the 19th century Makor Baruch neighborhood and the Mahane Yehuda open market. Facades must reflect the city's historic structures in this area. High-rises will be limited to 24 floors
The plan also stipulates that high-rises along Jaffa Street around the Calatrava Bridge at the western city entrance will be only for office space, not for residences. In the area of Independence Park, high-rises will be limited to the height of the Plaza Hotel on the western edge of the park, in order to preserve the park's spaciousness.



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Danya Cebus loses 4 Moscow projects, wins 2 in Bucharest

The two new contracts for Africa-Israel construction arm are worth €45.5 million altogether.

Moscow, Russian Investment Group cancelled the planning contract with Danya Cebus subsidiary Danya Cebus Rus Ltd. for four projects in the Moscow area. Danya Cebus declined to state the size of the deal, but said that its exposure was immaterial.
In Bucharest, a Danya Cebus subsidiary will build to residential projects. The first project is the construction of six 11-storey buildings with 489 apartments for Adama Holding Ltd. (TASE:ADMA.B1) subsidiary Gila Investment srl for a total of €31.2 million. The project will be built in two stages, the first will take 22 months from the date of the work order and the second will take 24 months.

In the second project, Danya Cebus will build six six-storey buildings with 156 apartments for Confidential Business srl, a joint venture of Profit Construction Industries Ltd. (TASE: PROB) and New Horizon Group Ltd. (TASE:NERZ), for €14.25 million. Construction is due to take 20 months from the date of the work order.



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Still here, more choosy

Foreign investment in Israeli real estate is changing.

One of the more intriguing issues in recent years, as restrictions on capital flows between countries have been lifted, is the presence of foreign buyers in the Israeli real estate market. The strengthening of the shekel, impending recession, and the global credit crunch have undoubtedly left their mark on by foreign investors in real estate in Israel, but there are many answers to the question as to how much of an effect these factors have had. A special survey by "Globes" reveals new facts about the foreign buyers market, as it approaches one of its traditional peaks in the sweltering month of August.
Gean Henri Gugenheim, Jerusalem region and foreign residents manager at Bank Adanim - Mortgages and Loans Ltd. says that the era when foreigners bought real estate in Israel as if gold was being handed out free is over. "They're no longer buying anything that moves," he says. They may have been taken advantage of in the past but today they know that the prices are high and that you don't buy everything, though the ideological aspect is still there.

"The currency of foreign residents such as the French is still strong, and they can buy excellent properties. But they head for the outlying regions, and to Ramat Gan, Givatayim, Rehovot, and the Jerusalem suburbs. In Rehovot, for example, they've been told that the price is far lower, and the return is the same, that the city is expanding, and that there is the Weizmann Institute, and the agriculture faculty, and that it's 20 minutes from the beach. It's a pure investment," adds Gugenheim.

Some foreigners buy small buildings, or purchase land and then build a property which they then share with friends or family members. However, the rise in air fares has meant that buildings like these remain abandoned save for the summer season or during the holidays. According to Gugenheim, one fact that represents a marked change from the past is that foreigners are now spending more time checking out properties and alternatives for finance.

Waiting for prices to fall

The calmer atmosphere in France and the lowering of taxes and interest rates which Gugenheim describes as the "Sarkozy effect" has resulted in French buyers opting for small apartments as an investment instead of buying large properties to live in themselves. "In the past, 70% of purchases were for residential purposes and 30% for a quick profit or as rental properties, but today the distribution between the two is almost 50%-50%." In general, the banker does not sense a drop in demand, but rather "a more focused search, and an assurance that the property acquired can be rented out," says Gugenheim.

Dr. Rina Degani, co-CEO of marketing research company Geocartography Knowledge, says that some sites are still seeing sales, and others where they have come to near standstill. She says that in 2007, there were almost 5,000 deals on the market with foreign residents out of a total of 92,000 deals on the new and second hand property market together. "This amounts to 5.4% of the total number of deals, but the share in the new apartment market is much larger," says Degani. "In 2008 there will be fewer deals, and the foreigners will wait until the dollar is a bit more stable, or the market stabilizes, or prices fall. They haven't abandoned the country, but a 35% increase in apartment prices in real terms is not something they'll be overjoyed about, and they will wait for prices to come down."

In 2005, foreign residents invested $1.2 billion in real estate. This figure rose to $1.44 billion in 2006 and $1.55 billion in 2007. Foreign residents are perceived as buyers of luxury properties, but the figures presented by Degani reveal that this is inaccurate, since in 2007 the average apartment sold for $304,000, and only 55% of the apartments sold to foreign residents had a price higher than $300,000. "It is a myth that they only buy in high-rises in Tel Aviv. In 2006, foreign residents paid, on average, $370,000 for apartments in Tel Aviv and Jerusalem, but in Ashdod and Netanya the average was even lower," says Degani.

Geographic region is also a key factor, with one third of English-speaking foreign residents showing a clear preference for Jerusalem. A further 20% buy in Netanya, 16% in the Tel Aviv region, and the rest in other parts of Israel. According to Geocartography data, the leading city among French speakers is Jerusalem.

Fall in luxury apartment prices

Mark Zeevi, CEO of real estate management software solutions company B.M.B.Y. Software Solutions Ltd., operator of the online real estate site Lagur, which caters for foreign residents, says, "From January to the beginning of June, the market came to a virtual standstill, but over the last month and a half we have almost returned to the situation we had at the end of 2007." Zeevi says, not surprisingly, that there has been a steep, 80% drop in interest in apartments in Israel from Americans, while interest from French buyers has fallen by 45%, 60% among UK buyers and 50% among buyers from everywhere else (mainly Italians, Spanish speakers, and Belgians).

"The low dollar made deals not worthwhile for foreigners, most of whose money is in dollars, to which one must add the global crisis and the expectation that prices in Israel will plummet as they have been doing in the US and in Europe. After six months, they saw that prices weren't falling and that the dollar had rallied slightly, so demand has picked up again," says Zeevi.

Data on the Lagur site show that the leading country in inquiries about buying property in Israel is France (45%), followed by Russia (30%), the US (15%), the UK, Italy, and Belgium. "I think that, within three or four months, the Russians will account for more than 50% of inquiries. We estimate that 5,000 apartments will be sold to Russians over the next two years," adds Zeevi. In other words, half of the total sales to foreigners at the current rate.

One person who does not share the feeling that it's "business as usual," is Adv. David Levi, manager of real estate sales site Michrazonline. "In recent months we've seen a fall in prices of luxury apartments as a result of the fall in the shekel-dollar exchange rate and shekel-euro exchange rate. Since foreign residents are an important player on the Israeli real estate market, especially in the luxury segment, there has been a clear slowdown in sales. This is being seen principally in fewer purchases by foreign residents and an increase in the range of luxury properties on offer," says Levi.



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Still here, more choosy

Foreign investment in Israeli real estate is changing.

One of the more intriguing issues in recent years, as restrictions on capital flows between countries have been lifted, is the presence of foreign buyers in the Israeli real estate market. The strengthening of the shekel, impending recession, and the global credit crunch have undoubtedly left their mark on by foreign investors in real estate in Israel, but there are many answers to the question as to how much of an effect these factors have had. A special survey by "Globes" reveals new facts about the foreign buyers market, as it approaches one of its traditional peaks in the sweltering month of August.
Gean Henri Gugenheim, Jerusalem region and foreign residents manager at Bank Adanim - Mortgages and Loans Ltd. says that the era when foreigners bought real estate in Israel as if gold was being handed out free is over. "They're no longer buying anything that moves," he says. They may have been taken advantage of in the past but today they know that the prices are high and that you don't buy everything, though the ideological aspect is still there.

"The currency of foreign residents such as the French is still strong, and they can buy excellent properties. But they head for the outlying regions, and to Ramat Gan, Givatayim, Rehovot, and the Jerusalem suburbs. In Rehovot, for example, they've been told that the price is far lower, and the return is the same, that the city is expanding, and that there is the Weizmann Institute, and the agriculture faculty, and that it's 20 minutes from the beach. It's a pure investment," adds Gugenheim.

Some foreigners buy small buildings, or purchase land and then build a property which they then share with friends or family members. However, the rise in air fares has meant that buildings like these remain abandoned save for the summer season or during the holidays. According to Gugenheim, one fact that represents a marked change from the past is that foreigners are now spending more time checking out properties and alternatives for finance.

Waiting for prices to fall

The calmer atmosphere in France and the lowering of taxes and interest rates which Gugenheim describes as the "Sarkozy effect" has resulted in French buyers opting for small apartments as an investment instead of buying large properties to live in themselves. "In the past, 70% of purchases were for residential purposes and 30% for a quick profit or as rental properties, but today the distribution between the two is almost 50%-50%." In general, the banker does not sense a drop in demand, but rather "a more focused search, and an assurance that the property acquired can be rented out," says Gugenheim.

Dr. Rina Degani, co-CEO of marketing research company Geocartography Knowledge, says that some sites are still seeing sales, and others where they have come to near standstill. She says that in 2007, there were almost 5,000 deals on the market with foreign residents out of a total of 92,000 deals on the new and second hand property market together. "This amounts to 5.4% of the total number of deals, but the share in the new apartment market is much larger," says Degani. "In 2008 there will be fewer deals, and the foreigners will wait until the dollar is a bit more stable, or the market stabilizes, or prices fall. They haven't abandoned the country, but a 35% increase in apartment prices in real terms is not something they'll be overjoyed about, and they will wait for prices to come down."

In 2005, foreign residents invested $1.2 billion in real estate. This figure rose to $1.44 billion in 2006 and $1.55 billion in 2007. Foreign residents are perceived as buyers of luxury properties, but the figures presented by Degani reveal that this is inaccurate, since in 2007 the average apartment sold for $304,000, and only 55% of the apartments sold to foreign residents had a price higher than $300,000. "It is a myth that they only buy in high-rises in Tel Aviv. In 2006, foreign residents paid, on average, $370,000 for apartments in Tel Aviv and Jerusalem, but in Ashdod and Netanya the average was even lower," says Degani.

Geographic region is also a key factor, with one third of English-speaking foreign residents showing a clear preference for Jerusalem. A further 20% buy in Netanya, 16% in the Tel Aviv region, and the rest in other parts of Israel. According to Geocartography data, the leading city among French speakers is Jerusalem.

Fall in luxury apartment prices

Mark Zeevi, CEO of real estate management software solutions company B.M.B.Y. Software Solutions Ltd., operator of the online real estate site Lagur, which caters for foreign residents, says, "From January to the beginning of June, the market came to a virtual standstill, but over the last month and a half we have almost returned to the situation we had at the end of 2007." Zeevi says, not surprisingly, that there has been a steep, 80% drop in interest in apartments in Israel from Americans, while interest from French buyers has fallen by 45%, 60% among UK buyers and 50% among buyers from everywhere else (mainly Italians, Spanish speakers, and Belgians).

"The low dollar made deals not worthwhile for foreigners, most of whose money is in dollars, to which one must add the global crisis and the expectation that prices in Israel will plummet as they have been doing in the US and in Europe. After six months, they saw that prices weren't falling and that the dollar had rallied slightly, so demand has picked up again," says Zeevi.

Data on the Lagur site show that the leading country in inquiries about buying property in Israel is France (45%), followed by Russia (30%), the US (15%), the UK, Italy, and Belgium. "I think that, within three or four months, the Russians will account for more than 50% of inquiries. We estimate that 5,000 apartments will be sold to Russians over the next two years," adds Zeevi. In other words, half of the total sales to foreigners at the current rate.

One person who does not share the feeling that it's "business as usual," is Adv. David Levi, manager of real estate sales site Michrazonline. "In recent months we've seen a fall in prices of luxury apartments as a result of the fall in the shekel-dollar exchange rate and shekel-euro exchange rate. Since foreign residents are an important player on the Israeli real estate market, especially in the luxury segment, there has been a clear slowdown in sales. This is being seen principally in fewer purchases by foreign residents and an increase in the range of luxury properties on offer," says Levi.



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Jerusalem building on preservation list demolished

A historic building on Harav Kook Street in downtown Jerusalem was demolished, even though it has been on the city's preservation list since 1968. The demolishing is a severe blow to the city's unique urban fabric. The building, built in the 1920s served as the Herzberg Orphanage and later as the residence of the Lemel School after it was moved from the Old City, and finally as the Ankori School for matriculation studies.
The building is close to the Rav Kook Center, Beit Ticho, and Hadassah College, all of which are historic buildings along Harav Kook Street and Hanevi'im Street in the historic downtown area.
The building was sold to a private developer by the Jerusalem municipality. The project for the lot called for a residential building with at least eight floors.

The Council for the Preservation of Historic Sites said in response, "We're shocked by the decision to demolish this building, and we're astonished that a building that had been on the preservation list for 40 years suddenly had its Urban Building Plan changed without our knowledge or the knowledge of the public."



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Treasury allocates funds to train Israeli construction workers

The Ministry of Finance has agreed to allocate NIS 30 million to the Association of Contractors and Builders in Israel(ACBI) and the National Union of Building Workers to train Israeli construction workers and hold training seminars and courses. The government also allocated an additional NIS 10 million.
The allocations came after a long battle waged by the ACBI and the National Union of Building Workers against the Ministry of Finance, which reached the High Court of Justice at one point. The ACBI petitioned the court against the Minister of Industry, Trade and Labor who sought to abolish the vacation fund for construction workers and transfer its accumulated proceeds to the employees' pension and insurance fund.


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Azrieli - Africa-Israel malls sale talks collapse

The sides are far apart on several fronts, but talks may resume in the future.

The parties disagree on a number of tax issues and other points relating to the structure of the deal. The negotiations have been called off, but may resume later.
Sources inform ''Globes'' that Azrieli Group was due to purchase Africa-Israel's stake in the Ramat Aviv Mall at a value of NIS 1.9 billion, reflecting a return on investment of 5.5%. This would be a record price of a mall, far above the assessment made for it. The price tag for the Savionim Mall was NIS 200 million.

"Globes" was the first to report about the talks between Africa-Israel and Azrieli Group over the sale of the malls. On July 10, Africa-Israel confirmed the report in a notice to the Tel Aviv Stock Exchange (TASE). It said that it had reached an memorandum of understanding (MOU) with Azrieli Group, and that it expected to obtain a total of NIS 1.8 billion for its holdings in the malls that were part of the deal.


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Olympia to build in Kiev

Petah Tikva-based Olympia Real Estate Group said Wednesday its European branch, Olympia Euro, has been awarded the contract for construction of a huge building project in the Ukrainian city of Kiev.

The project will include 2,000 residential units, a 180,000 square-meter commercial center and a 700,000 square-meter hotel. Olympia estimated construction costs will be in the range of NIS 3.4 billion, while the project is expected to generate NIS 8b. in sales for the company.



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Legal Ground: Little country, big on property

In tiny Israel, everything seems to be writ large. We have one of the highest numbers of symphony orchestras per capita, the greatest number of hi-tech start-ups in absolute terms and an effervescent property market.


HEFTSIBA PURCHASERS ignored the protection given to them by law, succumbing to the salesman's lures by diving into the pool without checking the water.
Photo: Ariel Jerozolimski
In Israel's 21,000 square kilometers, between 100,000 and 120,000 homes change hands yearly. Most of the apartments that are bought are second-hand sales and about one-third are in newly constructed buildings.

Israeli building companies invest approximately NIS 36 billion in construction, two-thirds of which is in the residential market. In fact, the construction industry contributes over 12% of the gross national product and employs several hundred thousand workers. To grasp how big an industry it is (in Israeli terms) one needs merely to look at the number of professional and semi-professionals directly involved: between 5,000 and 8,000 real estate agents; approximately 8,000 architects and about 9,000 registered building contractors. (The subject of registered contractors and why it is important to work only with contractors registered with the Registrar of Building Contractors will be the dealt with in a future column.)

It is not really surprising that the residential property market is so active. Quite apart from the large influx of foreign buyers, steadily growing from year to year, Israelis themselves are very active in the market. For Israelis love to be home owners; 72% own their homes, one of the highest homeowner rates in the world. Just take a look at other major countries to make a comparison: the home ownership rate in the US is 68%, in Britain 69% and in France 54%.


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Trouble in the Jewish Quarter

The Old City's rebuilt Jewish Quarter stands as one of Zionism's proudest accomplishments - a showpiece of history and spirituality that attracts millions of Israelis and foreign visitors annually to the Western Wall and the neighborhood's myriad tourist attractions.


The Hurva Synagogue refurbishment will restore it to its former glory - at too high a cost, say locals.
Photo: Israel Marc Sellem [file]
But the 600 families living in the picturesque quarter have a different perspective on life there. Many are fed up with the arbitrary quasi-bylaws imposed upon them by the Jewish Quarter Development Company (JQDC) - the government corporation established after the Six Day War to restore the then-ruined, historic neighborhood.

In particular, residents are irate about the inadequate parking arrangements imposed upon them by the JQDC. Two outdoor parking lots serve the area - one of 170 spaces reserved for residents and a 70-car visitors lot. Residents pay a nominal NIS 150 annual parking fee.

"The two lots were supposed to be for the residents only but from their great chutzpah the Hevra [JQDC] operates one for visitors to make money," charges Shmuel Yitzhaki, a member of the residents committee who has been living in the Jewish Quarter since 1979.

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Ra'anana will continue to expand

Ra'anana has presented its long-awaited "Vision for the year 2020," which plans to create an extra 4,000 apartments in the north and west of the city, reports local.co.il. But critics have been quick to attack the plan, which took two years to put together, cost NIS 176,000 and involved some 1,600 people.

According to the report, mayor Nahum Hofree presented the "vision" after it received council approval, saying the plan's main consideration was the pressing need for more housing in the city. The mayor said that 600 residential apartments would begin being built in 2009 on land currently occupied by Kfar Batya in the west of the city, and that the orchard recently planted on this land by the leaseholders would not stop the building project from going ahead. In addition, a further 3,500 residential units will be built in the north of the city, starting in the year 2010. As well as promising to find "housing solutions" for residents, the "vision" promises to upgrade road infrastructure and preserve a "clean and healthy" environment in the city.

Hofree said some 1,600 people, including hundreds of residents, had been involved in preparing the "vision" - the greatest number of people ever involved in any municipal plan in Israel. Most of the NIS 176,000 it cost went on the salaries of advisers. Hofree said the "vision" would act as "a compass that will lead us to the years ahead," adding that his aim was to preserve Ra'anana's character as a town and not change it to a city full of residential apartment towers.

Opposition councilors said the preparation of the plan had "lost all proportion." They said it had cost too much, had taken too long to prepare, involved too many people, and the end result was shallow and smacked of electioneering. Opposition councilor Leah Halperin said that previous mayor Ze'ev Bielski could have come up with the same plan "in half a day over dinner."

Sunday, April 20, 2008

Alrov in talks to buy Crown Estate property

The company plans to convert a historic building on Regents Street in London into a hotel.

Alrov (Israel) Ltd. (TASE: ALRO), controlled by Alfred Akirov, has reached an understanding with The Crown Estate to purchase a property on Regent Street in London for ₤90 million. The 24,000-square meter property, known as the "Cafe Royal" is being rezoned for a 160-room luxury hotel, as well as commercial space.

The Crown Estate manages more than ₤7 billion of property owned by the British royal family. The properties include, according the its website, "cityscapes, ancient forests, farms, parkland, coastline, and communities" throughout the UK and functions "as employer, influencer, manager, guardian, facilitator and revenue creator".

Azrieli developing outlet mall in Or Yehuda

The new mall is on the site of the failed Canor Mall.

Sources inform ''Globes'' that Azrieli Group unit Azrieli Malls Ltd. is building an outlet mall in Or Yehuda, which will be the first in the area for leading brands. The 6,000-square meter mall will have three floors of commercial space on the site of failed Canor Mall in the town center. The company is investing $1 million in interior and exterior renovations and upgrades.
The outlet mall will bring to Or Yehuda fashion chains such as Fox-Weizel Ltd. (TASE: FOX), Renuar, Lee Cooper, Crazy Line, and other brands.

Delek Real Estate in talks to buy UK property co

The target company is one of five largest income-producing property owners in the UK.

Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Real Estate Ltd. (TASE: DLKR) is in talks to acquire the controlling interest in one of the UK's five largest income-producing property companies. Sources at foreign investment banks said that Delek Real Estate subsidiaries plan to buy a substantial bloc of shares in the public company, which is traded on the London Stock Exchange at a market cap of NIS 4.2 billion and has NIS 8 billion in shareholders' equity. The company has an annual turnover of NIS 2.6 billion.

The target company's largest shareholder owns just 9% of it, facilitating the acquisition of control. Delek Real Estate is in talks with shareholders who own a quarter of the company altogether.

Nitsba closes sale of 2 Paris buildings

The company signed an MOU for the sale of six other French properties.

Nitsba Holdings Ltd. (TASE: NTBA) yesterday signed the sale contract for two office buildings in the Montrouge Pelletan neighborhood of Paris for €30 million (NIS 169 million). The Paris municipality has a 60-day first refusal rights to buy the property.
Nitsba added that its subsidiary which owns the properties would post a pretax capital gain of €5.3 million on the sale. Nitsba owns 90% of the subsdiary.
The two properties were leased to France Telecom until last month. Nitsba expects to close the deal by September.

Tel Aviv nixes building project on contaminated land

Tel Aviv deputy mayor Doron Sapir: So long as there is no thorough clean-up plan, there is no point in recommending the urban building plan.

The Tel Aviv Local Planning and Building Commission has recommended to the Tel Aviv Regional Planning and Building Commission not to go ahead with a proposed mixed-use project for the 55-dunam (13.75-acre) Israel Military Industries Ltd. (IMI) Magen lot because the land and groundwater are severely contaminated. The lot is located at the intersection of Hashalom Road and Aliyat Hanoar Street on the border of Tel Aviv and Givatayim.

The IMI Magen factory that previously occupied the site manufactured light arms until 1996. The land is owned by the Israel Land Administration (ILA). An urban building plan (UBP) from 1999 approved the site for offices, residential high-rises, and public buildings with an aggregate space of 87,000 square meters. 848 apartments were slated to be building in 43-storey high-rises. The contamination was discovered after IMI vacated the premises.

© Copyright of Globes publisher

Ocif sells Tel Aviv penthouse for NIS 23.5m

The penthouse in Ramat Aviv has a sea view

Sources inform ''Globes'' that Ocif Investments and Development Ltd.
OCIF has sold a 520-square meter 16th floor penthouse with a sea view in Ramat Aviv Gimmel for NIS 23.5 million. The buyers are Israelis.

Harel buys building rights for Tel Aviv office tower

The 22-storey building is slated to be completed and occupied in 2011.

Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Dikla Insurance Company Ltd. have bought the building rights for a proposed office building to be built on Harakevet Street in Tel Aviv for $55-60 million. The sellers are Electra Real Estate Ltd. (TASE:ELCRE) and its partners, Litav-Mitav Ltd., Neeman-Nir Projects and Building Ltd., and Megama (A.B.I.) Ltd.

The 20,000-square meter building is slated to have 22 or 23 floors above a commercial floor and five underground floors for parking and storerooms. The purchase price is based on an annual rental return of 8.25% when the building is fully leased to third parties or 7.75% if it is leased to government offices, a bank or a company rated AA or higher.

© Copyright of Globes Publisher

Gov't okays more construction workers from Judea, Samaria

The cabinet approved the addition of 5,000 Palestinian construction workers at its weekly meeting on Sunday. The decision was a victory for the Association of Contractors and Builders in Israel, which had been lobbying for months for increased manpower. The industry has not been able to attract Jewish workers.
The decision boosts the number of Palestinian construction workers by 30% from the current 14,250. The workers will come from the Palestinian Authority, but not the Gaza Strip.

In early 2007, the government decided to gradually cut the quota of foreign construction workers from the current 15,000 to zero by 2010. Contractors said that the decision did not provide an alternative source of manpower.

Africa-Israel Housing to develop new Tel Aviv apartments

The 13-storey building in the Florentin neighborhood will be surrounded by a park for local residents.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) subsidiary Africa-Israel Housing Ltd. (TASE:AFHS) has bought land zoned for 135 apartments in the south Tel Aviv neighborhood of Florentin for NIS 40 million, announced CEO Yoam Keren. He estimated the proceeds from the project at NIS 170 million.

The 2.5-dunam (half-acre) lot between Levinsky St. and Markolet Street was bought from private owners in a combination deal. Africa-Israel Housing will build two and three-room apartments in a multi-wing 13-storey building. Apartments on the top floors will be able to see the Mediterranean. The building will be surrounded by a park for local residents.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Jerusalem to get Waldorf Astoria

Hilton and the Reichman family are renovating a historic hotel.
a joint venture Hilton Hotels Corp. and IPC US REIT (TSX:IUR), controlled by Canada's Reichman family, has signed a management agreement to manage Jerusalem's Palace Hotel under the Waldorf Astoria brand. IPC is investing $100 million in renovating the historic building, which will have 220 rooms and suites and 30 residential apartments in an adjacent building.

The Palace Hotel at the corner of King David Street and Agron Street in downtown Jerusalem, was designed by a Turkish architect and built in the 1920s. The Ministry of Industry, Trade and Labor occupied the building for decades. IPC Jerusalem bought the property from the Israel Land Administration (ILA) on the promise of preserving and renovating it. Five floors will be added to the rear side of the building.

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Developers unite against Azrieli in Holon bid

Sources inform ''Globes'' that Amot Investments Ltd. (TASE:AMOT) and Ashtrom Properties Ltd. (TASE:ASPR) are jointly bidding against Azrieli Group subsidiary Canit Hashalom Investments Ltd. in a NIS 700 million tender for the construction of a high-tech and business park in Holon.


The Holon Economic Development Corporation closed the tender last Thursday. The proposed high-tech park on a 52-dunam (13-acre) site is aimed to compete against Kiryat Atidim in north Tel Aviv and Park Azorim in Petah Tikva. Holon's project is due to have 85,000 square meters of office space, 10,000 square meters of commercial space, 20,000 square meters of service space, and 90,000 square meters of underground parking.

Sunday, April 13, 2008

Tel Aviv nixes building project on contaminated land

The Tel Aviv Local Planning and Building Commission has recommended to the Tel Aviv Regional Planning and Building Commission not to go ahead with a proposed mixed-use project for the 55-dunam (13.75-acre) Israel Military Industries Ltd. (IMI) Magen lot because the land and groundwater are severely contaminated. The lot is located at the intersection of Hashalom Road and Aliyat Hanoar Street on the border of Tel Aviv and Givatayim.

The IMI Magen factory that previously occupied the site manufactured light arms until 1996. The land is owned by the Israel Land Administration (ILA). An urban building plan (UBP) from 1999 approved the site for offices, residential high-rises, and public buildings with an aggregate space of 87,000 square meters. 848 apartments were slated to be building in 43-storey high-rises. The contamination was discovered after IMI vacated the premises.

Azorim to build in prestige Houston neighborhood

Azorim Investment, Development and Construction (TASE: AZRM) has shifted its focus to the prestigious Memorial neighborhood in Houston, Texas, and is going green.

Eighteen months ago, the group sold for $57.5 million land it bought four months previously for $34 million, slated for the Galleria Mall project in Uptown Houston, planned to be a $550 million residential and commercial project. It is now about to construct a prestigious residential project comprising two towers, at an investment of $200 million, in Memorial, and to build in accordance with the standards of the US Green Building Council.

Delek Real Estate in talks to buy UK property co

The target company is one of five largest income-producing property owners in the UK.

Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Real Estate Ltd. (TASE: DLKR) is in talks to acquire the controlling interest in one of the UK's five largest income-producing property companies. Sources at foreign investment banks said that Delek Real Estate subsidiaries plan to buy a substantial bloc of shares in the public company, which is traded on the London Stock Exchange at a market cap of NIS 4.2 billion and has NIS 8 billion in shareholders' equity. The company has an annual turnover of NIS 2.6 billion.

The target company's largest shareholder owns just 9% of it, facilitating the acquisition of control. Delek Real Estate is in talks with shareholders who own a quarter of the company altogether.

Azrieli developing outlet mall in Or Yehuda

Sources inform ''Globes'' that Azrieli Group unit Azrieli Malls Ltd. is building an outlet mall in Or Yehuda, which will be the first in the area for leading brands. The 6,000-square meter mall will have three floors of commercial space on the site of failed Canor Mall in the town center.

The company is investing $1 million in interior and exterior renovations and upgrades.
The outlet mall will bring to Or Yehuda fashion chains such as Fox-Weizel Ltd. (TASE: FOX), Renuar, Lee Cooper, Crazy Line, and other brands.

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Alrov in talks to buy Crown Estate property

The company plans to convert a historic building on Regents Street in London into a hotel.
controlled by Alfred Akirov, has reached an understanding with The Crown Estate to purchase a property on Regent Street in London for ₤90 million. The 24,000-square meter property, known as the "Cafe Royal" is being rezoned for a 160-room luxury hotel, as well as commercial space.

The Crown Estate manages more than ₤7 billion of property owned by the British royal family. The properties include, according the its website, "cityscapes, ancient forests, farms, parkland, coastline, and communities" throughout the UK and functions "as employer, influencer, manager, guardian, facilitator and revenue creator".

Auctioning real estate in Israel

Auction houses around the world are usually associated with works of art and antiques. A system where the seller can get the best price in the market at that particular moment in time for his wares. With the advent of internet auctioning what one wants to sell through an auction arena, that is to the highest bidder, has widened considerably. The wares on sale now include every conceivable item, while the market place has become a global place. Credit cards facilitate payment and a global postal or courier system ensure that an Israeli buyer can acquire goods in a virtual auction arena such as in Hong Kong.

This trend has also started to capture the real estate market as more and more websites specialize in the sale of real estate. In recent times the system of auctioning real estate through the internet is gaining ground though slowly and with reason. Real estate sales conducted through an online auction is now also offered in Israel. David Levy a lawyer who specializes in real estate has launched a new website called, mizrachonline, in which homes are been auctioned to the highest bidder.

Friday, April 11, 2008

Real estate in the shadow of the Qassams

The first Grad missile that fell on Ashkelon scored a direct hit on the real estate sector. Deals that were about to be signed were stalled, and buyers who did agree to continue negotiations demanded 10% price reductions.

"Since the rockets began falling, a number of clients have called me, asking if they should move forward with deals," says Avigail Biton, a real estate appraiser in the South. "I told them, quite frankly, that now is not the time to invest. Why put their hard-earned money into something that is uncertain?"

There is a fundamental conflict between the real estate market - which symbolizes calm, stability and faith in an unruffled future - and war and shelling. The Second Lebanon War paralyzed the real estate market in Haifa and the North, and not surprisingly, the real estate market in the range of the Qassams and Grads has practically ground to a halt since the recent escalation of attacks from the Gaza Strip.
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Amnon Gelula, of Bayit Vegan Realty in Ashkelon, has had several important deals postponed. A group of investors from Britain, who wanted to buy land near the beach and build vacation apartments, decided at the last minute to keep their money in their wallets.

New IKEA store may open within months

The Rishon LeZion Municipality and the Ministry of Interior have agreed on a scaled-down plan for the store.

Representatives of the Rishon LeZion municipality and the Ministry of the Interior have reached agreement on a scaled down plan for a commercial zone in the Me’uyan Soreq lot. The plan, which must now go forward for review and approval by the Central Region District Planning and Building Commission, will not allow for the building of a commercial project by Gazit-Globe (TASE: GLOB), but it will allow IKEA Israel to open its second store.

Discount Bank buys back Tel Aviv property

Israel Discount Bank has bought back half of a property at 16-18 Hashoeva Alley in Tel Aviv from MR Development and Investments Ltd. for NIS 21.7 million.
The bank sold the 2,600-square meter property in 2004 for NIS 14 million.
Discount Bank sold its share in the building because of the real estate crisis at the time under a sell and lease-back deal.

Anglo-Saxon Tel Aviv general manager Amos Glazer, who brokered the deal, said, "It is interesting that the bank sold its share in the property in 2004, and has now bought it back for 50% more than it received."

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Excellence sees drop in foreign real estate investment

David Baruch: "Israel's real estate market will be hit by the US sub-prime crisis."

"A slowdown in Israel is a certainty and a sharp drop in foreign investment in both commercial and residential real estate is probable," predicts Excellence Investments CEO David Baruch. He made the comment during the annual conference of the Association of Contractors and Builders in Israel in Eilat on Friday. There were more than 950 participants at the event at the Princess Hotel.

Baruch added, "The sub-prime crisis has created capital distress at foreign banks, with the result that Israeli developers in international markets will find it difficult to obtain credit. The price of credit in Israel and overseas will go up."

Tel Aviv's first hotel to be refurbished

The Tel Aviv Planning and Building Commission has approved four plans for new hotels with aim of adding 400 rooms in the city.

One project calls for refurbishing Tel Aviv's first hotel, the Elkonin Central Hotel, on Lilienblum Street, into a boutique hotel with 38 room. The Elkonin was built in 1913, and was once considered as having the city's most luxurious accommodations. The neglected and hazardous two-storey building is slated for preservation, with an extra floor in the same style to be added.

Building frenzy in Hod Hasharon

Hod Hasharon has gone on an unprecedented building frenzy in which it plans to build 3,000 new homes and increase its population by 10,000 people - or 20 percent - over the next five years, reports the Hebrew weekly Yediot Hasharon. But the "grandiose" plan is causing a great deal of controversy, with many residents fearing environmental damage, traffic nightmares and an end to the city's pastoral atmosphere.

According to the report, the plan is the most "revolutionary" to hit Hod Hasharon since it was declared a city 17 years ago. City planners have set two target dates: a five-year goal of increasing the population by 20%, and a 20-year goal during which time they aim to double the current population. Building work on hundreds of apartments has already begun in the western part of the city, and a new shopping mall and high-tech complex are currently going up in the Neveh Ne'eman area.

Apartments to be built on college land

The Local Planning and Construction Committee has decided to allow 450 residential apartments to be built on land belonging to the Seminar Hakibbutzim teachers' training college on Derech Namir, reports Yediot Tel Aviv. But the committee rejected a suggestion to move the college to south Tel Aviv and create an additional 100 apartments on the entire plot of land.

According to the report, the college occupies only about 20 percent of its 50,000 square meters of land, and several years ago college managers agreed to allow the unoccupied land to be used for other purposes, on the condition that the builders would also tear down the rundown old college buildings and rebuild them. Now the committee has given its approval for three 27-storey residential towers, containing a total of 450 apartments, to be constructed on the site.

Ra'anana will continue to expand

Ra'anana has presented its long-awaited "Vision for the year 2020," which plans to create an extra 4,000 apartments in the north and west of the city, reports local.co.il. But critics have been quick to attack the plan, which took two years to put together, cost NIS 176,000 and involved some 1,600 people.

According to the report, mayor Nahum Hofree presented the "vision" after it received council approval, saying the plan's main consideration was the pressing need for more housing in the city. The mayor said that 600 residential apartments would begin being built in 2009 on land currently occupied by Kfar Batya in the west of the city, and that the orchard recently planted on this land by the leaseholders would not stop the building project from going ahead. In addition, a further 3,500 residential units will be built in the north of the city, starting in the year 2010. As well as promising to find "housing solutions" for residents, the "vision" promises to upgrade road infrastructure and preserve a "clean and healthy" environment in the city.

Legal Ground: Little country, big on property

In tiny Israel, everything seems to be writ large. We have one of the highest numbers of symphony orchestras per capita, the greatest number of hi-tech start-ups in absolute terms and an effervescent property market.

In Israel's 21,000 square kilometers, between 100,000 and 120,000 homes change hands yearly. Most of the apartments that are bought are second-hand sales and about one-third are in newly constructed buildings.

Israeli building companies invest approximately NIS 36 billion in construction, two-thirds of which is in the residential market. In fact, the construction industry contributes over 12% of the gross national product and employs several hundred thousand workers. To grasp how big an industry it is (in Israeli terms) one needs merely to look at the number of professional and semi-professionals directly involved: between 5,000 and 8,000 real estate agents; approximately 8,000 architects and about 9,000 registered building contractors.

Azorim to build in prestige Houston neighborhood

Shaya Boymelgreen's Azorim Investment, Development and Construction (TASE: AZRM) has shifted its focus to the prestigious Memorial neighborhood in Houston, Texas, and is going green.

Eighteen months ago, the group sold for $57.5 million land it bought four months previously for $34 million, slated for the Galleria Mall project in Uptown Houston, planned to be a $550 million residential and commercial project. It is now about to construct a prestigious residential project comprising two towers, at an investment of $200 million, in Memorial, and to build in accordance with the standards of the US Green Building Council.

The two towers will each be 28 floors high, and the project will include an 1,800 sq. m. spa. The project will be constructed on 5.25 acres of land that Azorim bought for $22 million in December 2006. Apartment prices in the new project are expected to start at $1 million.

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Saturday, April 5, 2008

Forbes sees promise in Israeli real estate

"Forbes" says, "Although the worldwide real estate market is softening as credit reservoirs dry, some spots are poised for growth." The magazine rated Israel as the world's most "up-and-coming" real estate market.

"Forbes" notes, "Israel's real estate market struggled in the late 1990s and early 2000s as the country grappled with deflation. As late as 2006, market weakness had pushed prices down 4%, according to Knight Frank, a London-based real estate research company. But last year prices climbed 2%. That is expected to continue, given the country's robust 5.1% 2007 growth in gross domestic product and a 3.8% projection for this year, according to the International Monetary Fund."

Thursday, April 3, 2008

For sale: Tel Aviv's most expensive flat, a steal at $34 million

The elite Tel Aviv real estate market is sailing to unrecognizable heights these days, at least as far as contractors can see.

The Gindi Group, which holds construction of the G Tower in central Tel Aviv, recently announced that it would be selling one of its apartments for $34 million - the highest-priced flat in the city.

The cost is nearly twice that of Israel's currently highest-priced apartment, purchased by Idan Ofer on Rothschild Boulevard 1 for $17.1 million.
The question now is whether anybody will actually be willing to pay the demanded amount.

The apartment in question is a triplex flat combining a former duplex and penthouse apartment on the 24th, 25th and 26th floors, just under the triplex purchased more than a year ago by the holder of controlling interest for Bank Hapoalim, Shari Arison, for $13 million.

This new triplex sits at 1,500 square meters and has a 360 degree panoramic view of the city. The demanded price includes a value of more than $22,000 per square meter.

On the one hand, the price indicates that the sellers are sure someone will pay up. But on the other hand, the whole matter seems an issue of compulsion, or just a gimmick that will not be able to yield any kind of real deal.

"After all the noise, Gindi admits that they have not managed to sell the two apartments and are creating a buzz around the possibility of connecting them. That's it," said one real estate market man in Tel Aviv.

Indeed, in the eyes of most real estate agents in Tel Aviv, the rising prices are not reasonable. A few months ago, the Oranim Group - which owns the Sea One Project on Hayarkon Street - decided to abandon their plans of selling a penthouse facing the sea for $25 million, after they were unable to sell it after a few years of trying.

If Ofer's $17.1 million apartment ranks the measure of prestigious apartments in Tel Aviv, then real estate agents say there is no justification for doubling the price

Nitsba to sell 6 French properties

The properties are leased to France Telecom.

Nitsba Holdings Ltd. (TASE: NTBA) has signed an memorandum of understanding (MOU) to sell six properties in France for €61.5 million. The properties are all leased to France Telecom through 2011, and generate €5.1 million in annual rent.
Nitsba has booked the properties at a value of €53.4 million on the basis of a fair value assessment.

Monday, March 31, 2008

Kardan to merge real estate unit in Israel with Delek Real Estate

AMSTERDAM (Thomson Financial) - Kardan NV said it is to merge its Israeli real estate unit, Kardan Real Estate, with Delek Real Estate, creating one of the largest residential property developers in Israel.

The merged company will hold a land bank for approximately 7,000 housing units of which 1,600 are already under construction, the company said.

Mike Croall; mike.croall@thomson.com
Copyright Thomson Financial News Limited 2008. All rights reserved.

Subprime-stricken foreign buyers cooling on J'lem

Until recently, apartment buyers from overseas would say "the market in the holy city has no price." Nowadays real estate agents in the city say that even if this remains the case, there is a limit to what they actually are willing to pay.

Banks, assessors, brokers and even sellers are now admitting that the Jerusalem real estate party is on its last legs.

"We had an Arab house with construction rights and a 500-year-old carob tree on the property, the oldest in Israel, certified by the Agriculture Ministry," says Dalia Bikovitski, the RE/MAX franchise owner in the German Colony. "The house was on the market for a month, and sold for $560,000. In the past, there would be many contenders for a bargain like that, and the property would have sold within a week."
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This is a relatively quick sale nowadays. Two years ago, far higher-priced homes were sold within days. Properties in central Jerusalem neighborhoods - Talbieh, the German Colony and Rehavia - have nearly doubled in price in the last four years. In 2003, pre-state single-family Arab style homes in Talbieh and the German Colony went for $6,500 to $7,500 per square meter, and in 2007 they were going for $12,000 to $14,000 per square meter.

Normal apartments are currently selling for $7,000 to $8,000 per square meter, which is also an increase of tens of percent, partly due to the falling value of the dollar

Foreign residents waking up

Property deals in the second half of 2007 were closing at levels similar to the first half of 2007, as real estate price increases began slowing. The flow of overseas buyers has slowed greatly in recent months.

The primary explanation for this slowdown is the economic crisis in the U.S. and the collapse of the dollar. Nevertheless, there is a feeling among prospective apartment buyers that Jerusalem property owners are asking too much for exclusive homes.

"There certainly is a slowdown," one agent says. "There is a feeling that while foreign residents behaved naively in the past and bought just about anything for any price, they are now wiser."

Nevertheless, the slowdown has not been reflected in falling prices yet. Daniel Tal, is offering his home for sale for $2.5 million.

He sounds sure when he says that this is the price, and that he is not worried. The 700-square-meter home near Nahlaot has been on the market for four months, but he has not considered lowering his asking price.

Sellers and buyers of luxury real estate in Jerusalem have a big problem with the tribulations of the dollar exchange rate. There is a great deal of confusion, and both parties are trying to use it to their advantage.

"I have a property whose owners offered it for sale about 18 months ago based on 4.5 shekels to the dollar, and they are continuing to offer it at the same exchange rate," reports one realtor. "It's complete madness. And I have another seller who has raised the price of the property four times in the past month, from $120,000 to $150,000 now. It makes no sense. Sellers are going to have to get used to the new situation quickly, and lower prices."

But buyers are in no hurry to acclimatize to the shaky status of the dollar, either. The exclusive Jerusalem market has traditionally operated in dollars, mainly because a substantial proportion of its clientele have been ultra-Orthodox Americans. These refuse to accept the fact that sellers use shekels, and periodically update the dollar price for their properties.

"When I say that the price of an apartment is NIS 1.5 million, based on an exchange rate of NIS 4 to the dollar, this equals $375,000, but at the current exchange rate of NIS 3.5 to the dollar, the price is $430,000 - an additional $55,000. Foreign residents don't understand it, they think it is dishonest, that we are pulling the wool over their eyes," says one agent.

The result of this conflict is that the market is unsettled, buyers are furious at sellers over the price fluctuations, and deals fall through.

"Negotiations between a buyer and a seller are about the dollar," one bank manager confirms. "At the beginning of the year the dollar was trading at NIS 3.85 shekels, and it is now down to NIS 3.47, so the cost to the buyer is substantially higher.

"The dollar has dropped 18% against the shekel over the past year, a large amount for any buyer. This causes an overall slowdown," he says.

Ashtrom plans new high-tech park in Haifa

Ashtrom Properties Ltd. (TASE:ASPR) and the Haifa Economic Corporation are planning a new high-tech park at the Haifa Bay compound. The high-tech park will be in the same format as Matam.

The new high-tech park is initially planned to cover between 20,000 square meters and 40,000 square meters. Haifa Mayor Yona Yahav brokered the deal between Ashtrom and Haifa Economic Corporation. The new high-tech park aims at creating jobs in the Haifa and Krayot area and for northern residents in general. Market sources estimate the investment in land at $70 million and the cost of construction at $60 million.

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Securities Authority requests $1 billion valuation explanation

The Israel Securities Authority has demanded clarifications from Electra Ltd. (TASE: ELTR) and Pangaea Real Estate Ltd. (TASE:PNGD) regarding their announcement yesterday that land they bought in Saint Petersburg, Russia, for $100 million in November 2007 was now given a value of $1 billion by Cushman and Wakefield.

The 600-acre section of agricultural land is located 15 kilometers from downtown Saint Petersburg. The Securities Authority has demanded documents relating to the land and the valuation, in view of the ten-fold rise in value in just six months.
Pangaea's share rose 24% yesterday and Electra's rose 3.6%.

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Gertler family expands Tel Aviv hotel holdings

The Blue Circle Hotels Ltd., owned by the German-Jewish Gertler family, has bought the Tel Aviv Mercure Hotel at 14 Ben Yehuda Street from Avner Levy for $16.6 million on the basis of a maximum shekel-dollar exchange rate of NIS 4/$.

The four-star Mercure, a business hotel that is one of Tel Aviv newest hotels, opened last year. It has 103 rooms on 12 floors and is managed by the French Mercure hotel chain.

With this acquisition, the Gertlers become influential players in the Israeli hotel industry. They own 40% of the 270-room Tel Aviv Carlton and half of the 250-room Tel Aviv Metropole. The Gertlers' partners in these hotels are other European Jewish families. In August, the Gertlers will reopen the Tel Aviv Savoy Hotel on Geula Street. The 60-room hotel has been renovated, two floors have been added, and it has been rebranded as a boutique hotel. The hotel was the site of a terrorist attack in March 1975.

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Sunday, March 30, 2008

Electra-Pangaea Russia property value increases to $1b

Electra Ltd. and Pangaea Real Estate Ltd. bought the land for $100 million six months ago.


Electra Ltd. (TASE: ELTR) and Pangaea Real Estate Ltd. (TASE:PNGD) have obtained a valuation of $1 billion from Cushman & Wakefield for a 600-acre piece of land in Saint Petersburg, Russia. The two companies bought the land in November 2007 for $100 million through a Russian joint venture that they own in equal shares.

Cushman & Wakefield valued the land at between $977 million and $1.06 billion, depending on varying assumptions. The companies explicitly stated that the valuation is based on methods that are not submissible for accounting purposes, and will not be included in asset valuations in their financial reports. The purpose of the valuation is for marketing parts of the land to potential buyers.

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Alrov expands in Japan

The company provided a Japanese company with a loan to buy two income-producing properties under construction in Tokyo.

Alrov (Israel) Ltd. (TASE: ALRO) subsidiary Alrov Properties and Lodgings Ltd. (TASE: ALRPR), controlled by chairman Alfred Akirov, will provide a Japanese company with a NIS 144 million loan to buy two income-producing properties under construction in Tokyo. The deal is being carried out through Alrov Properties subsidiary PIH Japan BV, in which Alrov owns 75%.

PIH has paid the seller an NIS 6.85 million down payment, and will pay an additional NIS 6.85 million in September 2008, and the balance when the properties are transferred. The payments will be guaranteed in the event that the seller fails to meet his contractual commitments.

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Tagor Capital launches Romanian investment fund

Tagor Capital Ltd.

has signed an MOU with an international company to set up a joint venture that will develop and operate shopping centers in Romania at an investment of €100 million. Each party will own half of the venture.

Tagor Capital will also expand its year-old financial collaboration with Patron Capital Ltd., an international REIT, which has €1 billion under management. The companies doubled their joint venture to develop residential and commercial properties in Romania by €56 million to €112 million.


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Office rents rise in Tel Aviv

Israel is near the middle of a Cushman & Wakefield ranking.

The global economic crisis has not yet affected prime office rent. The 2008 "Office Space Across the World" by Cushman & Wakefield shows a 14% rise in office rent worldwide in 2007, following a 10% rise in 2006. "In 2007, 90% of the countries and 79% of the locations surveyed showed rental growth. Only three locations, or 1% of the sample, showed a rental fall this year, with the remainder experiencing stable conditions."

Israel is ranked 32nd in the 2008 survey, compared with 39th place in the 2007 survey. Israel's prime office space is the central business district of Tel Aviv.

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Foreigners continue to buy Israeli real estate

The slump in the dollar has not yet affected foreign investment in Israeli real estate.

The slump in the dollar has not yet affected foreign investment in Israeli real estate. Diaspora Jews, especially from the US, UK, and France are continuing to buy apartments either as residences or for investment.

The Bank of Israel reports that foreign residents bought $93 million worth of real estate in February 2008, compared with $167 million in January. The central bank notes the monthly drop in investment, but also notes the lower number of business days in February.

Foreign investors bought $260 million worth of real estate in January-February, an annualized amount of $1.56 billion, about the same level as in 2007. Foreign investment in real estate totaled $4.1 billion in 2005-07.

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Gertler family expands Tel Aviv hotel holdings

Blue Circle Hotels has bought the Mercure hotel and is reopening the Savoy.


The Blue Circle Hotels Ltd., owned by the German-Jewish Gertler family, has bought the Tel Aviv Mercure Hotel at 14 Ben Yehuda Street from Avner Levy for $16.6 million on the basis of a maximum shekel-dollar exchange rate of NIS 4/$.

The four-star Mercure, a business hotel that is one of Tel Aviv newest hotels, opened last year. It has 103 rooms on 12 floors and is managed by the French Mercure hotel chain.

With this acquisition, the Gertlers become influential players in the Israeli hotel industry. They own 40% of the 270-room Tel Aviv Carlton and half of the 250-room Tel Aviv Metropole. The Gertlers' partners in these hotels are other European Jewish families. In August, the Gertlers will reopen the Tel Aviv Savoy Hotel on Geula Street. The 60-room hotel has been renovated, two floors have been added, and it has been rebranded as a boutique hotel. The hotel was the site of a terrorist attack in March 1975.

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Tshuva sells Eilat hotels

Fattal Hotel Management bought the Golden Tulip Club and Golden Tulip Privilege for $60 million.

Fattal Hotel Management Ltd. has bought the Golden Tulip Club and Golden Tulip Privilege hotels in Eilat from Yitzhak Tshuva for $60 million. The purchases increases Fattal Hotel Management's chain of hotels to 20.

The 282-room Golden Tulip Club was built in 1995, and has been managed by Fattal since 2001. The hotel was renovated four years ago, and a water park, banquet halls, Internet room, library and new restaurant were added.

The 247-room Golden Tulip Privilege is a stolid hotel with no entertainment staff that gives its guests a quiet vacation with an emphasis on health activities.

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Ashtrom plans new high-tech park in Haifa

Market sources estimate the investment in land at $70 million and the cost of construction at $60 million.


Ashtrom Properties Ltd. (TASE:ASPR) and the Haifa Economic Corporation are planning a new high-tech park at the Haifa Bay compound. The high-tech park will be in the same format as Matam.

The new high-tech park is initially planned to cover between 20,000 square meters and 40,000 square meters. Haifa Mayor Yona Yahav brokered the deal between Ashtrom and Haifa Economic Corporation. The new high-tech park aims at creating jobs in the Haifa and Krayot area and for northern residents in general. Market sources estimate the investment in land at $70 million and the cost of construction at $60 million.

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Euro Trade buys land in the Netherlands

The company will finance 86% of the deal with a five-year loan from a European bank.

Euro Trade Real Estate International (YTB) Ltd. (TASE:ERTR.B1) and a group of other investors have jointly purchased an office building in Groningen in the north of the Netherlands for €27 million. This is Euro Trade's second deal in a week, after it announced it had signed a memorandum of understanding to purchase a property in the town of Zoetermee for €4.4 million. The company will finance 86% of the deal with a five-year loan from a European bank bearing an annual interest rate of 5.5%. Euro Trade will own half the property and the other investors the will own the rest.

Euro Trade locates, purchases and upgrades income-producing properties in Western Europe.

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JEC in talks to buy property in France

The Fishman subsidiary completed the purchase of another seven properties in France.

is in advanced talks to buy a property in Nantes, France, for €17.3 million in a buy and lease-back deal. The 15,244-square meter property is located on a 20-acre site. Annual rent is €1.52 million, giving a return on investment of 8.8%.
JEC is in talks with a financial institution for a non-recourse loan for 84% of the purchase price.

In a separate development, JEC completed the purchase of seven properties in France with aggregate space of 221,500 square meters for €72.8 million. The properties will generate a return on investment of 9%. JEC's French properties account for 15% of its revenue.

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British Israel posted a net profit of NIS 291.7 million on NIS 889.1 million revenue in 2007.

British-Israel Investments Ltd. (TASE: BRTS), controlled by Leo Noe, today published its financial report for the fourth quarter of 2007 and for the year as a whole. The shopping center owner had a record year in revenue, cash flow, and net profit after a busy year of acquisitions. The company will distribute a dividend of NIS 12 million.

British Israel posted a net profit of NIS 291.7 million on NIS 889.1 million revenue in 2007, compared with a net profit NIS 247.2 million on NIS 556.3 million revenue in 2006. Net operating income (NOI) rose 64% to NIS 305 million in 2007 from NIS 186 million the year before. Financing expenses also rose 77% to NIS 310 million from NIS 174.8 million.

During the year, British Israel bought half of the Hadar Mall in Jerusalem for $31 million, the Rehovot Mall for NIS 410 million, the Hasharon Mall in Netanya for NIS 344 million, and other properties for an aggregate NIS 1.8 billion. The company also bought the Crystal House in Ramat Gan for NIS 155 million, and sold it five months later for NIS $199 million. The balance of income-producing properties rose to NIS 5.4 billion at the end of 2007 from NIS 3 billion a year earlier.


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Pangea revenue jumps

Real estate developer Pangaea Real Estate Ltd. (TASE:PNGD) today published its financial report for the fourth quarter of 2007 and the year as a whole. The company's revenue for 2007 increased almost seven-fold to NIS 63.38 million from NIS 9.07 million in 2006. The increase resulted primarily from the sales of property which generated NIS 42.9 million in revenue, as well rental income which rose to NIS 9.62 million in 2007 from NIS 2.58 million a year earlier.

Pangaea also saw an increase in its various expenditure items, which totaled NIS 30.85 million in 2007 compared with NIS 7.27 million in 2006. Financing costs were the highest of all, increasing to more than NIS 18 million in 2007, from NIS 4.25 million a year earlier.

Net profit for the year soared to NIS 22 million, $1.65 per share, from NIS 1.4 million, $0.12 per share in 2006.

Pangaea's share soared 30.5% yesterday after it was disclosed that the company had obtained an estimate from global real estate services company Cushman & Wakefield for a 600-acre plot in Saint Petersburg, Russia, which gave a valuation of $1 billion, tenfold the price the two companies paid for the land. Pangaea will nevertheless record the asset on a cost basis in its financial report, since the valuation is inadmissible as an item in a financial statement.


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New properties increase Gazit-Globe rental income

Gazit-Globe Ltd. (TASE: GLOB) today published its consolidated financial report for the fourth quarter of 2007 and for the year as a whole. These are the first results on the basis of fair value valuations in accordance with International Financial Reporting Standards (IFRS). The company's rental revenue rose 18% in 2007 to NIS 3.6 billion. Most of the increase was due to net new purchases of properties during the year. The company will distribute a dividend of at least NIS 1.20 per share.

Gazit-Globe's net operating income rose 20% to NIS 2.4 billion in 2007 from NIS 2 billion in 2006. Funds from operations (FFO) rose 34% to NIS 305 million (NIS 2.57 per share) in 2007 from NIS 229 million in 2006. Net profit totaled NIS 2.27 billion in 2007, 18% less than the NIS 2.77 billion in 2006. The company attributes the erosion to higher property revaluations in 2006. The net profit accruing to Gazit-Globe after deducing accruals to minority shareholders was NIS 983 million (NIS 8.32 per share), a total amount that was unchanged on a year earlier.


The company posted NIS 961 million revenue from rent and NIS 108 million from the sale of properties in the fourth quarter. NOI totaled NIS 636 million, net profit was NIS 208 million and net profit to Gazit-Globe shareholders was NIS 76 million.

Gazit-Globe owns 465 properties altogether through its subsidiaries with a total area of 4.7 million square meters, and which are booked at a value of NIS 44.4 billion. The gross annual rent from those properties totals NIS 3.8 billion. The company's investments increased to NIS 7.3 billion in 2007 from NIS 5.2 billion in 2006. The company also raised NIS 1.4 billion in share capital during 2007, the same amount as a year earlier. The company has 23 properties under development and 27 properties under redevelopment at the end of the year, at a total estimated cost of NIS 3.7 billion.


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Proposed law would reduce tax near construction sites

The Israel Federation of Independent Organizations and Tel Aviv deputy mayor Arnon Giladi are promoting legislation which if passed into law, will make traders located near a site where infrastructure works have been ongoing for more than 30 days eligible for a discount of up to 25% on local property tax.

Under the proposal, the rate of property tax charged to the trader while work is in progress will not exceed 75% of the annual charge. The size of the discount will be determined by the type and duration of the work in progress, the extent to which it is disrupting trading.

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South Tel Aviv gets upgrade plan including towers

The Tel Aviv Local Planning and Building Commission has approved a number of important building plans for south Tel Aviv. One plan calls for the construction of offices at the Heresh compound along the Ayalon. The lot will be dividend into two sections: one 50-dunam (12.5-acre) section between the La Guardia overpass and the Hahagana overpass; and the second 35-dunam (8.75-acre) section from the Hahagana overpass to Heyl Hashirion St.

This plan allows 450% building rights of main space, 40% service space, and a four-floor parking garage. The section will be divided to lots with connecting pedestrian walkways, public squares, and covered passageways. Six 15-40 storey buildings with 115,000 square meters of aggregate space can be built on the first section, and seven 10-35 storey buildings with 180,000 square meters of aggregate space can be built on the second section

Tel Aviv Local Planning Commission chairman Doron Sapir said that it had approved in principle the plan's principles, but that transportation problems still remained. The city engineer will therefore formulate a plan for construction in stages, subject to solving the transportation problems.


The Tel Aviv Local Planning Commission also approved a plan for a vacate-and-build project along Levinsky Street, near the new Central Bus Station. The plan includes two 30-storey mixed-use high-rises with residences on the upper floors. The current buildings on the site are mainly industrial and commercial buildings, some of which are quite dilapidated.

Published by Globes [online]

Tao to sell Eilat mall stake

Tao and Phoenix jointly bought 50% of the mall in 2006 from Eli Israeli at a value of NIS 925 million.


Tao Tsuot Ltd. (TASE: TAO-M) subsidiary Tao Tsuot Real Estate Ltd. is in talks to sell its entire share in the 50% stake it jointly with Israel Phoenix Assurance (TASE: PHOE1;PHOE5) owns in the Mul Hayam mall in Eilat. The company expects to sell its share for it NIS 80 million, net of commitments and liabilities.

Tao and Phoenix jointly bought 50% of the mall at the end of 2006 from Ofek Assets, Investments and Development Ltd. co-owner and CEO Eli Israeli at a value of NIS 925 million

Published by Globes [online],

Foreigners continue to buy Israeli real estate

The slump in the dollar has not yet affected foreign investment in Israeli real estate. Diaspora Jews, especially from the US, UK, and France are continuing to buy apartments either as residences or for investment.

The Bank of Israel reports that foreign residents bought $93 million worth of real estate in February 2008, compared with $167 million in January. The central bank notes the monthly drop in investment, but also notes the lower number of business days in February.

Foreign investors bought $260 million worth of real estate in January-February, an annualized amount of $1.56 billion, about the same level as in 2007. Foreign investment in real estate totaled $4.1 billion in 2005-07.

Published by Globes [online]

Wednesday, March 5, 2008

Squares in a round hole

Around the world there are squares and plazas that have become national symbols - Beijing's Tiananmen Square and Moscow's Red Square - while others are must-see places on any visit to their cities: Trafalgar Square in London and Piazza Navona in Rome. In Israel, however, despite a few modest successes here and there, it is hard to point out such sites.

In recent years many local developers - some by choice and others not - have built plazas near the projects they have completed. In most cases the results are a failure. One such example is the plaza at the entrance to the Pelephone building in Givatayim: anyone who does not have business in the building will never go there.

Architect Eran Tamir-Tawil, who writes a Hebrew blog on the arsitectura site, claims that that particular plaza may not even be a real square, as it is just open space in front of the building, and not an active square. It is above a parking lot, has hardly any landscaping or greenery, no public functions and no real life of its own.
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"Building percentage restrictions and the desire to gain extra space," says Tamir-Tawil, "lead [planners] to play games with levels and a series of ramps, like at the plaza beside Beit Asia in Tel Aviv, which is a missed opportunity.

"The reason squares (kikar in Hebrew) in Israel are less prominent and impressive than abroad," continues Tamir-Tawil, "is the distance between houses in Israeli cities.

"In Israel, unlike Europe, there is space between all the buildings, so we don't need a square to achieve perspectives of open space. When cities are crowded, as they are in Europe, the square stands in dramatic contrast to the closedness around it."

In Israel the "square" concept is over used, even when the space in question does not fit the description. Very few squares in Israel fulfill their urban purpose successfully, and there are plenty of examples of failures.

Kikar Atarim is a case in point. It is not frequented as a meeting place and is an uninviting spot in the heart of Tel Aviv.

Tamir-Tawil believes that Kikar Atarim suffers from the same problem as Place de la Bonne Heure, on the border of Tel Aviv-Jaffa.

"The architects who designed them never intended to create a square," explains Tamir-Tawil, "but rather to find a solution for the parking lot - and therefore did not succeed in making a successful square." Place de la Bonne Heure, beside the Dan Panorama hotel, should have been part of a series of raised plazas, above parking lots, that were planned as the heart of the main urban center in the Menashiya neighborhood. The square was designed by architects Amnon Niv, Amnon Schwartz and Danny Schwartz. Despite its poetic name, Place de la Bonne Heure is a lifeless, inaccessible site. There is a good chance that you have passed it on several occasions and never known you were there.

Tamir-Tawil thinks the problem with Kikar Atarim and Place de la Bonne Heure is similar to that of Kikar Dizengoff, also in Tel Aviv.

"With all three of them, the traffic solution was more important and the square is only part of the total plan. During that period, the 1960s and 1970s, architects believed it was possible to raise the level of the street to the fourth floor and that human activity would manage to bridge the gap. They thought that passersby would make the effort. This optimism and naivete did not prove true, and this problem is not unique to Israel. This assumption was prevalent elsewhere, and there, too, proved incorrect."

Kikar Dizengoff in its current incarnation was planned by architect Tsvi Lissar, of Lissar Architects and City Planners. Lissar insists that the criticism of the design stems from a nostalgic perspective that is cut off from reality. Even so, Lissar does not hide the fact that the traffic arrangements played a central role in the planning process. Among other things, he relates that the depth of the square's foundations was calculated in keeping with a plan for a subway train with a station in the plaza of nearby Chen Cinema. Lissar feels there is no need to tear down the square, but rather just make some changes and adjustments.

"Of course I would do all sorts of things differently now," says Lissar, "but I think the concept is good even today. The square's weak spot is the pedestrian crossings of Dizengoff, Pinsker and Reines Streets, which in the original plan were next to the square, but were moved away by orders of the Transportation Ministry.

"There are two large streets beside the square that create a continuum. These are places with piazza qualities (small, attractive squares that are very common in Italy) - that were never turned into such due to business considerations. I think the area around the square should be made into a cultural center. Bookstores and art galleries would make pleasant surroundings."

Lissar adds that he would also change the finishing materials.

"Kikar Dizengoff was inaugurated in 1978 and was built from the best materials available back then," continues Lissar. "Today I would change the finishing of the floor and use more durable materials. The original design included sunshades that were left out due to budgetary constraints. Returning Kikar Dizengoff to its previous state will create a virtual square. People will not come to the central area, which will be a traffic island separated from the circular sidewalk by a road. There will only be a sense of space, but the square will not function. Just like Kikar Hamedina."

Even people who disagree with the idea of razing Kikar Dizengoff do not think it is a role model. There is also no such dispute regarding Kikar Atarim. Unfortunately, it is harder to find examples of successful squares.

Tamir-Tawil says that the most successful square in Israel is the Western Wall plaza. It is an urban space that is almost always bustling with activity. Kikar Rabin is also a good square. It is important to remember that it was not intended as an active square, like a piazza, but as a monochromatic plaza it serves its purpose. Jerusalem's Zion Square and Kikar HaChatulim (Cat Square, behind Nahalat Sheva) are always busy, and are part of a successful urban system. "A good square needs easy access," explains Tamir-Tawil, "and activities around its edges and surroundings. The facades of the buildings facing the square are less crucial."

Lissar believes there is no formula for planning a square, and each instance is different. "A good square is influenced by its geometry, its surroundings," he says. "Some squares are built even before their surroundings. It is important to understand who comes to the square and how they get there. There is another component, which I call the street connection. People walk along the street and stop to meet other people, or to watch, and experiences area created that depend on the surroundings. "Some people contend that a square must be on the level, with the street, but that is a matter for debate. Today, when you stand on top of Kikar Dizengoff, you see the buildings and the cars passing beneath the square and coming out the other side. This is a different type of experience." Lissar offers the example of the square beside the Ordea cinema in Ramat Gan as a successful square. "The rectangular square is connected with a road; there is a synagogue on one side and a road that is closed on Shabbat, becoming part of the sidewalk. That is a square with a human element." So what can be done to improve Israel's squares? Tamir-Tawil says it starts with the planning. "A square's success depends on its really being wanted from the outset, and not as an afterthought or byproduct of something else. A good square, in other words, is a goal in its own right."

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The pitter-patter of big feet

Galit, a woman in her early thirties, had been looking for a place to rent in Tel Aviv for ages. A little apartment, something nice. Months passed and she figured she'd seen every available rental space in town. Then she spoke with a landlord in Bavli, and thought his description over the phone sounded terrific - a little place in North Tel Aviv. She thought it was an independent unit, on the roof.

In fact, what he was offering was a room that was an integral part of the family home. "The entrance to the room for rent was the main one of the apartment. There was no separate one," she relates. "You go into the apartment, and right there is a staircase that leads to the room on the roof. The room itself was very small. It did have a shower and toilet of its own, and a tiny kitchenette of about half a square meter had been installed." It did offer a modicum of privacy, but not much more than that.

Why on earth would an established couple want to bring a stranger into their home, sharing their refrigerator and various intimate parts of their lives? Galit also thought it astonishing, especially since there was no separate entrance to the rooftop room.
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"You walk through the main entrance into the apartment and see the living room. There is no real separation between the family's apartment and the rented room," she explains. At any given point she, or whoever rents the room, could freely come downstairs and roam about in the family's private space.

The would-be landlord explained that his son had lived in that room on top, and left the nest. He and his wife could, of course, have let the room be - or they could rent it out for NIS 2,500 a month, which is a nifty NIS 30,000 a year. To them it was a no-brainer.

The thing is, the phenomenon is becoming increasingly common. Actually, renting out a room in the family home had been fairly common back in the 1950s and '60s. Students and other young adults would often find themselves living with an alternative family, as it were. But those were perhaps more intimate times. Today the rationale is financial: Rental prices in central Israel, mainly the greater Tel Aviv area, are sky high. A whole apartment as such is often unaffordable to many renters, and as for the families, the magnitude of the potential extra income is a siren's song that they can't resist.

As for the tenants, who would want to live cheek to jowl with a strange family? Well, anybody who can't find an affordable place in the area in which they want to live, for example.

Amir Shaltiel, who runs and runs the Eldar Project Marketing agency, says that an old rule-of-thumb has been broken. "In the past the boundary was clear: Landlords didn't rent a part of the apartment that could only be reached through the family space, because that lowered their standard of living," he explains. "But that line has become blurred as rental prices rise. It has become perfectly legitimate to rent a room on the roof that you can only reach through the family home."

Galit kept searching and found another place, where a woman had split her already-not large apartment into two units. The one for rent was all of 30 square meters in size, and the landlady seemed to be prepared to settle for a smaller space herself - plus NIS 33,000 a year.

Dream come true?

Elderly couples whose children have moved out, and who are living in a spacious apartment but are dependent on social security, can obviously use the passive income of rent - but the interesting thing is that the phenomenon is occurring across a broader spectrum. Sometimes young couples buy a large apartment and rent out a room or two, to help pay their mortgage. If they think of it in advance, their apartment can be designed to accommodate a tenant, somehow creating at least the illusion of privacy using plaster walls, internal doors or screens, and so on, says Shaltiel. Until the young couple has children, they don't need all the space and can often use the income.

Also, Israelis like to own their own property but because of real estate prices, they often can't really afford to. This is one way to make the dream come true. Anyway, youngsters are used to sharing apartments: it's even fun for them. The invasion of their privacy tends to be less of an issue than for an elderly couple not accustomed to trance music wailing through the ceiling.

Builders are accommodating the trend. Yohanan Haas, chief executive of Realty Executives, says that in Kfar Yona for example some 15% of the homes are being created with a discrete unit that can be rented out. "I guess that 10% to 12% of the families in the Sharon rent out their basements," he guesses.

Old Tel Aviv apartments were planned wastefully, points out Haim Kaufman of Kaufman Properties. They tend to have old-fashioned, closed-off "service porches," spacious hallways, separate kitchens - whereas today the fashion is for the kitchen and living room to be one continuous, open unit. Redesigning the interior can gain the owner a lot of space, some of which can be rented out. And the rental income can be used to pay for the renovation, too.

But take note: It isn't always legal to just up and split your apartment. In Tel Aviv there are whole streets where it's against the law. Before you hire an architect or take a hacksaw to your ancient kitchen table, check the local bylaws first.

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Environmental focus at Globes Real Estate Conference

Guests include Global Property Guides publisher Matthew Montagu-Pollock.

Globes' will hold its annual Real Estate Conference tomorrow at the David Intercontinental Hotel in Tel Aviv. Guest speakers will include Cushman & Wakefield director of research and business analytics Dr. Megan Walters and the publisher of Global Property Guides, Matthew Montagu-Pollock.

This year's conference plenums will focus on trends and predictions in the Israeli and global markets, infrastructure projects in Israel, as well as Israeli and international opportunities and development. Panel sessions will cover a variety of emerging topics in the Israeli real estate and construction industries. Green building panelists will examine the formulation of a standard and ask whether costs are excessive and if the public is will to pay more for environmentally friendly homes.

Property and Building reorganizes malls management

The company owns Yishpro centers in Modiin, Beersheva, and Kiryat Gat.

Sources inform ''Globes'' that IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Property and Building (TASE: PTBL) has decided to reorganize all the management of its malls under one umbrella group, in a similar fashion to the Azrieli Group and Israel Malls. The company intends to follow this by re-branding its entire mall segment.

Among the malls held by Property and Building are the Kiryat Ono Mall (which it jointly owns with Amot Investments Ltd. (TASE:AMOT in equal shares), the Givatayim Mall (jointly owned with Clal Industries and Investments (TASE: CII), the Em Hamoshavot mall in Petah Tikva, and the Yishpro chain of malls in Modiin, Kiryat Gat, Ness Ziona, and Beersheva, as well as other commercial properties.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Israeli basketball legend establishes real estate fund

The fund will invest in residential and commercial properties in Eastern Europe.

Sources inform ''Globes'' that former Maccabi Tel Aviv Basketball star Mickey Berkowitz is organizing a group of investors for residential and commercial properties, as well as rezoned agricultural land, in Eastern Europe. He said, "I'm still at the stage of reviewing options. I went to see possibilities and I believe that we'll begin operating on the ground within two or three months."

Real estate experts believe that Berkowitz was referring to developments that need an investment of €3-10 million for the purchase of land, and an additional €12 million for construction. The experts added that in order to enter these countries, the investor group will need at least €10 million in shareholders' equity and a local partner.

ADO buys much of Wardinon Real Estate

ADO chairman Adi Keizman: We're now in the advanced stages of building a company for the long haul.

ADO Europe Ltd. (TASE: ADO), controlled by Adi Keizman, today acquired control of Wardinon Real Estate Ltd. (TASE:WDRE) at a company value of NIS 88 million. In the first stage, ADO bought 60% of Wardinon Real Estate for NIS 52.6 million. The Wardinon family will continue to own the rest of the company and Dan Wardinon will stay on as CEO.
ADO bought nearly 77,000 shares at NIS 691.61 per share from two private companies owned by members of the Wardinon family. Wardinon Real Estate rose 2.3% by midday to NIS 506. ADO rose 0.1% to NIS 1.50.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

One in ten Tel Aviv luxury apartment buyers under 30

Nearly 90% are bought by married couples

"Globes" has obtained a copy of the first comprehensive survey of luxury apartment buyers in Tel Aviv. An analysis of the figures shows that the most common buyer is a married couple in their 40s, free professionals, who reside in Tel Aviv.
The survey was conducted by Ocif Investments and Development Ltd. (TASE: OCIF) and Aviv Co., which are jointly building a number of luxury projects in the city. They include Aviv Bazameret, Migdal Moshe Aviv, and Aviv Bagimmel. The survey included 398 buyers of apartments in these projects, with the aim of compiling a representative profile of the buyers.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Perhaps it really is a bargain Africa Israel

Analysts look again at Africa-Israel - those who dare, that is.
In less than a year, Africa-Israel Investments (TASE: AFIL) has gone from the status of the new "people's share" to being the outcast of the Tel Aviv 25 list. Since the peak registered last May, the share had fallen 60% before yesterday's upward correction, leaving many investors disappointed.

But if you ask controlling shareholder Lev Leviev, Africa-Israel is actually a very interesting stock. "Africa-Israel is the biggest bargain on the market," Leviev said in warm defense of the stock at the International Rough Diamonds Conference that took place on Tuesday.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Saturday, March 1, 2008

Apartment sales rise in jerusalem

Sales of new apartments in Jerusalem rose 5% in January

1,180 new private sector apartments were sold in January 2008, 9.1% more than in January 2007, but 0.7% fewer than in December, the Central Bureau of Statistics reported today. Sales included 1,040 apartments under construction and 140 apartments whose construction was completed in the past 15 months.
An average of 1,194 apartments were sold per month in August 2007-January 2008, 6.6% more than the monthly average of 1,120 apartment sold in February-July 2007.

Among the apartments sold in January, the average number of months a new apartment was on the market, since the start of construction, was 13 months. Half of the apartments sold in January were on the market for 11 months.

Apartment sales in Jerusalem were 5% higher in January than January 2006 and sales in the central region were up 46.2%. 11 homes were sold in Judea and Samaria in January, compared with 46 in January 2006.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Bonei Hatichon, Minrav to build Jerusalem apartments

The two companies expect hundreds of millions of shekels in proceeds.

Bonei Hatichon Civil Engineering and Infrastructures Ltd.
(TASE:BOTI) and Minrav Holdings Ltd. (TASE: MNRV) have separately won Israel Land Administration (ILA) tenders for lots in the East Talpiot neighborhood of Jerusalem zoned for hundreds of apartments. Bonei Hatichon also won a tender for a residential lot in Netanya.
Bonei Hatichon won four tenders for lots zoned for 300 apartments in East Talpiot for about NIS 153 million plus NIS 12.5 million in development costs. The company also bought a lot zoned for 99 houses in Netanya for NIS 21 million plus NIS 6.6 million in development costs. The company expects to spend NIS 515 million to develop the projects, not including VAT and financing costs, and anticipates NIS 650 million in proceeds.

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American Colony israel real estate developer

Sources inform that israel real estate developer American Colony Ltd. is set to float its European activity on London’s Alternative Investment Market (AIM) at the ambitious value of €400 million. UK investment bank Collins Stewart will be the lead underwriter for the issue.

American Colony develops, builds, markets and manages residential property projects. It listed on the TASE last May, and currently has a market cap of just NIS 309 million. The company intends to float on AIM its wholly owned subsidiary Inter Colony Real Estate Development Ltd., which manages its property business in Hungary, Romania, and Cyprus. Inter Colony is building a total of 20,000 units, 3,000 of which are in the process of being sold.

Friday, February 22, 2008

Neighborhood renewal, or urban waste in haifa?

Driving along Independence Street in the lower city of Haifa, you see sign after sign trumpeting the future inauguration of this or that college in the future Port Campus.

In most cases, the buildings marked for development house nothing but pigeons and fleas. This neglect doesn't exactly scream of an inspiring project designed to change the face of Haifa and renew the dilapidated neighborhoods at the bottom of the mountain. But though investment may be slow, the Haifa municipality truly is devoting major resources to the future campus - at the expense of the Hadar Hacarmel neighborhood, which remains in the rear.

Haifa mayor Yona Yahav told TheMarker Real Estate in August 2005 that within a few years, the lower city would become a buzzing center, proudly housing faculties from the Technion and Haifa universities, alongside a selection of colleges.
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The campus is the city's solution for a tedious problem: the empty buildings in the area that once provided services to government institutions but whose offices moved to new edifices in Kiryat Hamemshala. Hassan Shukri Street is an example: once it housed many a government building, such as the local offices of the Interior Ministry, the court house, and city hall. But with the inauguration of the government complex, the offices emptied and now stand innocent of sapient life.

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Thursday, February 21, 2008

oligarch builds biggest private house in israel, caesarea

"Yediot Ahronot" reports that Benjamin Netanyahu and Arcadi Gaydamak are to get a new neighbor in Caesarea. A Russian oligarch purchased five villas and demolished them to make way for the largest private estate in Israel.

According to the report, the five properties, occupying a total of 11 dunams (2.2 acres) of land, were purchased by a woman of Russian origin reportedly on behalf of a Russian oligarch. Local realty brokers say this is the largest ever purchase of property in one transaction.

The estimated cost of the purchase of the villas totaled more than $11 million, with the cost of building the new estate estimated at $50 million. According to one of the contractors on the project, the estate will include a swimming pool, tennis court and gardens like those in the Versailles Palace.

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008