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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Sunday, March 30, 2008
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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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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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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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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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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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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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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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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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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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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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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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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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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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]
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],
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]
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]
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