Yitzhak Tshuva's real estate arm posted a net loss of NIS 1.98 billion in 2008, compared with a net profit of NIS 608.7 million in 2007. The net loss attributable to majority shareholders was NIS 1.64 billion in 2008, compared with a net profit attributable to majority shareholders of NIS 308.2 million in 2007.
The company's revenue plummeted 83% to NIS 707.5 million in 2008 from NIS 4.38 billion in 2007. The company attributed most of the 2008 loss to NIS 745.9 million in write-down on investment properties, compared with upward revaluations of NIS 758.8 million in 2007.
Tuesday, March 31, 2009
Sunday, March 29, 2009
Israel's Olmert cleared in real estate deal
JERUSALEM (AP) — Israeli police on Thursday said they had dropped a criminal investigation into a real estate deal by Prime Minister Ehud Olmert, just days before he leaves office, citing lack of sufficient evidence.
Four other cases against Olmert are still pending.
In the real estate inquiry police investigated allegations that Olmert bought a home in an exclusive Jerusalem neighborhood at a steep discount in exchange for granting favors to the builder. The alleged deal occurred while Olmert was Jerusalem mayor, years before he became prime minister in 2006.
Police spokesman Micky Rosenfeld said the case was closed on Thursday after an investigation showed no "concrete evidence of illegal acts in this case."
Four other cases against Olmert are still pending.
In the real estate inquiry police investigated allegations that Olmert bought a home in an exclusive Jerusalem neighborhood at a steep discount in exchange for granting favors to the builder. The alleged deal occurred while Olmert was Jerusalem mayor, years before he became prime minister in 2006.
Police spokesman Micky Rosenfeld said the case was closed on Thursday after an investigation showed no "concrete evidence of illegal acts in this case."
Wednesday, March 25, 2009
Brack Capital sells Manhattan hotel for $121m
Brack Capital Real Estate BV sold earlier this month the newly opened Hilton Garden Inn in midtown Manhattan to RLJ Development LLC for $121.2 million. The 298-room hotel is located at 63 West 35th Street, near Herald Square and a couple of blocks from the Empire State Building.
Dutch-registered Brack Capital was founded by Shimon Weintraub, Ronen Peled, and Ronny Yitzhaki. In February 2007, it bought the site of a parking garage from Icon Parking Systems Inc. for $31 million and built the hotel on the site. The hotel was opened on March 1, the same time as the deal for its sale was closed on the basis of a term sheet signed by Brack Capital USA CEO Moshe Dan Azogui in January.
Dutch-registered Brack Capital was founded by Shimon Weintraub, Ronen Peled, and Ronny Yitzhaki. In February 2007, it bought the site of a parking garage from Icon Parking Systems Inc. for $31 million and built the hotel on the site. The hotel was opened on March 1, the same time as the deal for its sale was closed on the basis of a term sheet signed by Brack Capital USA CEO Moshe Dan Azogui in January.
Tuesday, March 24, 2009
Gazit-Globe sees Q4 loss of 860-885 mln shekels
TEL AVIV, March 22 (Reuters) - Israeli real estate investment firm Gazit-Globe Ltd (GLOB.TA) said it expects declining property valuations to have driven it to a loss of between 860 million and 885 million shekels ($214-220 million) in the fourth quarter.
The company said on Sunday in a statement that cash flow from its ongoing operations of renting out properties remained stable.
Gazit-Globe said it will write down 900 million shekels for its share in the decline in the fair value of investment properties among its subsidiaries.
The company said on Sunday in a statement that cash flow from its ongoing operations of renting out properties remained stable.
Gazit-Globe said it will write down 900 million shekels for its share in the decline in the fair value of investment properties among its subsidiaries.
Monday, March 23, 2009
43% oppose farmland for building projects
A plurality of the Israeli public opposes rezoning farmland for real estate projects, according to a survey by Market Watch Institute on behalf of Kanat Ltd., an insurance fund for natural risks in agriculture.
The survey asked 500 respondents, "Is the loss of agricultural land for real estate projects good or bad for the country?"
43% of respondents said that the rezoning of agricultural land for real estate projects was bad for the country irrespective of the reason; 33% said that it was all right, but only for projects of national importance; and 18% said that it was good, provided that there was no alternative.
Kanat found that respondents aged 45-64 attached greater importance to agricultural land than people aged 25-34.
Kanat CEO David Ginsburg said, "Despite the land shortage in central Israel, and the desire to find cheap land reserves in the proximity of large cities, Israelis understand the importance of agricultural land, and that it should not be surrendered for convenience."
The survey asked 500 respondents, "Is the loss of agricultural land for real estate projects good or bad for the country?"
43% of respondents said that the rezoning of agricultural land for real estate projects was bad for the country irrespective of the reason; 33% said that it was all right, but only for projects of national importance; and 18% said that it was good, provided that there was no alternative.
Kanat found that respondents aged 45-64 attached greater importance to agricultural land than people aged 25-34.
Kanat CEO David Ginsburg said, "Despite the land shortage in central Israel, and the desire to find cheap land reserves in the proximity of large cities, Israelis understand the importance of agricultural land, and that it should not be surrendered for convenience."
Saturday, March 21, 2009
Off the fifteen real estate companies with the highest market caps, has fallen 82% from its peak, which was in 2007
Yes, NIS 14 billion. That's less than half the value of Africa Israel Investments alone in May 2007, which was the day it floated subsidiary AFI Developments on the London Stock Exchange. That day, Africa Israel was trading at a market cap of over NIS 28 billion.
However astonishing that loss of value, it's the fact: 15 distinguished real estate companies, including the likes of Chaim Katzman's Gazit Globe, Shari Arison's Housing & Construction, Nathan Hetz's Alony Hetz, Leo Noe's British Israel, Eliezer Fishman's Jerusalem Economic Corporation and Lev Leviev's Africa Israel, are together worth less than half the value of just one of them almost two years ago.
However astonishing that loss of value, it's the fact: 15 distinguished real estate companies, including the likes of Chaim Katzman's Gazit Globe, Shari Arison's Housing & Construction, Nathan Hetz's Alony Hetz, Leo Noe's British Israel, Eliezer Fishman's Jerusalem Economic Corporation and Lev Leviev's Africa Israel, are together worth less than half the value of just one of them almost two years ago.
Tuesday, March 17, 2009
IKEA's Rishon Lezion store to open in November
The only commercial area in the compound will be made of up the 323,000 square feet IKEA store.
"I am willing to pledge that we have no intentions of using salami tactics to set up further commercial areas, and will only build high-tech buildings with cafes.
"IKEA's real estate company, Iris Hagilboa, has pledged to me that it will build the high-tech park, and I promise not to build another commercial center, but to make the place green and environmentally friendly, wish a new access road from road 431 as promised," Tzur told Mamon, Yedioth Ahronoth's economic section.
IKEA Israel Chairman Ron Hadasi confirmed that within six months from the time the project is approved by the planning committee in May, all the merchandise will be in place on the store's shelves and 450 employees will be recruited.
"I am willing to pledge that we have no intentions of using salami tactics to set up further commercial areas, and will only build high-tech buildings with cafes.
"IKEA's real estate company, Iris Hagilboa, has pledged to me that it will build the high-tech park, and I promise not to build another commercial center, but to make the place green and environmentally friendly, wish a new access road from road 431 as promised," Tzur told Mamon, Yedioth Ahronoth's economic section.
IKEA Israel Chairman Ron Hadasi confirmed that within six months from the time the project is approved by the planning committee in May, all the merchandise will be in place on the store's shelves and 450 employees will be recruited.
Friday, March 13, 2009
Land of milk and money
For many years, about 5 percent of real estate purchased in Israel was bought by foreign residents, often without mortgages. This creates a very interesting financial opportunity: Combine foreigners, who own hundreds of millions of dollars in real estate, with a banking system that as has not been hit to the same degree by the raging storms in North America, and you have the possibility of providing credit.
The idea is simple: Instead of selling your property in Israel because you are short on liquid cash, you may borrow on your property at various rates of interest.
The good news is that if you know the ins and outs of the Israeli banking world, there are specific departments that are willing to lend, even generously, for long periods.
The idea is simple: Instead of selling your property in Israel because you are short on liquid cash, you may borrow on your property at various rates of interest.
The good news is that if you know the ins and outs of the Israeli banking world, there are specific departments that are willing to lend, even generously, for long periods.
Tuesday, March 10, 2009
25 acres - Sea Of Galilee West - Pilgrim's Village
Great for Christian organizations, approval for Pilgrims village. The property has the best and the most extensive building rights in the Galilee area.
It's the only land with building rights that can be utilized for a number of hotels, motels and resorts for big Christian organizations, located in the west side of the holy sea near the Israel-Switzerland Forrest within a beautiful nature reserve surrounded by a forest, enlightening a peaceful environment.
Tam Tree Real Estate - For more information : tamtree@gmail.com
Wednesday, March 04, 2009
UK Government boycotts Israeli tycoon Lev Leviev over settlement construction
The government of the United Kingdom has decided to boycott Israeli diamond and real estate mogul Lev Leviev over his companies’ construction of Israeli settlements on Palestinian land in the Occupied West Bank, the Israeli newspaper Ha’aretz Daily reported today. The decision by the UK government followed a coordinated advocacy campaign by human rights advocates in New York, the UK, Palestine and Israel demanding that the UK government end plans to rent the new UK Embassy in Tel Aviv from Leviev’s company Africa-Israel.
The UK’s Tel Aviv Ambassador notified Leviev of the decision by letter, following a British parliamentary debate, and inquiries with Leviev’s company Africa-Israel over its activities in the West Bank, Ha’aretz reported. According to Ha’aretz, “The embassy in Tel Aviv confirmed the details of the story.”
The UK’s Tel Aviv Ambassador notified Leviev of the decision by letter, following a British parliamentary debate, and inquiries with Leviev’s company Africa-Israel over its activities in the West Bank, Ha’aretz reported. According to Ha’aretz, “The embassy in Tel Aviv confirmed the details of the story.”
Tuesday, March 03, 2009
Slight drop in rental prices recorded in Tel Aviv
In central Tel Aviv the average rental price for a two-room apartment remained NIS 3,400 ($810), while the average rent for a three-room apartment dropped by 4.5% to NIS 4,400 ($1,045) a month.
In south Tel Aviv the average price for a two-room apartment remained NIS 2,600 ($620), whereas the rent for a three-room apartment jumped by 3% to NIS 3,200 ($760) a month.
In the more pricy north Tel Aviv area, two-room apartments gained 3% in rental prices, which averaged NIS 3,500 ($835) in February, but three-room rent plummeted by 6% to an average of NIS 4,800 ($1,145).
The trend in prices was ambivalent in other places in Israel as well. In Jerusalem, for instance, the rental price for a two-room apartment rose by 2% to NIS 3,000 ($715) in February, while the price for a three-room apartment remained unchanged – NIS 3,400 ($810).
In south Tel Aviv the average price for a two-room apartment remained NIS 2,600 ($620), whereas the rent for a three-room apartment jumped by 3% to NIS 3,200 ($760) a month.
In the more pricy north Tel Aviv area, two-room apartments gained 3% in rental prices, which averaged NIS 3,500 ($835) in February, but three-room rent plummeted by 6% to an average of NIS 4,800 ($1,145).
The trend in prices was ambivalent in other places in Israel as well. In Jerusalem, for instance, the rental price for a two-room apartment rose by 2% to NIS 3,000 ($715) in February, while the price for a three-room apartment remained unchanged – NIS 3,400 ($810).
Squaring up with Tel Aviv's prime real estate
A rare plot of land in Hamedina Square, in the heart of Tel Aviv, recently changed hands for $6,000 per square meter. The price is extraordinarily high, given that the world is groaning in recession and that, in fact, the land still isn't eligible for development.
A businessman bought 185 square meters in the circular open space for NIS 4.48 million, and that's just for the land.
The circle of open space is actually owned by 150 separate parties. Although it is far from finalized, a plan is taking shape to zone the spot for 452 apartments in three high-rises with 29 stories each.
Advertisement
Despite the plan's embryonic nature, over the years pieces of the land have changed hands several times, with the price of each transaction depending on the proportion of building rights associated with the deal.
A businessman bought 185 square meters in the circular open space for NIS 4.48 million, and that's just for the land.
The circle of open space is actually owned by 150 separate parties. Although it is far from finalized, a plan is taking shape to zone the spot for 452 apartments in three high-rises with 29 stories each.
Advertisement
Despite the plan's embryonic nature, over the years pieces of the land have changed hands several times, with the price of each transaction depending on the proportion of building rights associated with the deal.
Monday, March 02, 2009
Israel real-estate prices expected to rise
The Israeli index of leading economic indicators, called "Hameshulav" in Hebrew, fell 1.2 percent in January - the sharpest monthly drop ever. And in the last quarter of 2008, the GDP contracted by 0.5%, which means that the economy is in recession. But despite these depressing figures, real-estate prices are expected to rise during the coming year because while demand is falling, supply is falling faster.
Housing starts are at a minimum, and according to figures released by the Association of Contractors and Builders in Israel (ACBI), the supply of new apartments will dry up by September or October of this year.
"The supply situation is nothing less than catastrophic," ACBI general manager Yossi Gordon told The Jerusalem Post recently. "The number of new apartments available to the general public is at on all-time low and falling. Housing starts have been falling for the past five years, and I very much fear that housing starts this year will be at the low end of our expectations and hover around 20,000 units.
Housing starts are at a minimum, and according to figures released by the Association of Contractors and Builders in Israel (ACBI), the supply of new apartments will dry up by September or October of this year.
"The supply situation is nothing less than catastrophic," ACBI general manager Yossi Gordon told The Jerusalem Post recently. "The number of new apartments available to the general public is at on all-time low and falling. Housing starts have been falling for the past five years, and I very much fear that housing starts this year will be at the low end of our expectations and hover around 20,000 units.
Sunday, March 01, 2009
Israel Inflation Probably Eased to 3.3% in January
Israeli inflation probably eased to its slowest pace in 14 months in January as prices for energy, vehicles, travel and apparel declined.
The inflation rate fell to 3.3 percent from 3.8 percent in December, according to the median estimate of 10 economists surveyed by Bloomberg. The Jerusalem-based Central Bureau of Statistics will report the data at 6:30 p.m. today.
“The main factor until now has been lower energy prices, but as the labor market starts to get worse we’ll start seeing declines in the food and housing categories,” said Yaniv Hevron, an economist at Psagot Investment House Ltd. “The Bank of Israel will probably lower the base rate between 0.5 to 0.75 percentage point this month.”
The inflation rate fell to 3.3 percent from 3.8 percent in December, according to the median estimate of 10 economists surveyed by Bloomberg. The Jerusalem-based Central Bureau of Statistics will report the data at 6:30 p.m. today.
“The main factor until now has been lower energy prices, but as the labor market starts to get worse we’ll start seeing declines in the food and housing categories,” said Yaniv Hevron, an economist at Psagot Investment House Ltd. “The Bank of Israel will probably lower the base rate between 0.5 to 0.75 percentage point this month.”
91-unit FAIRE Tower in Ramat Gan
FAIRE's investors hail from the US, Canada, the UK, Belgium, and other countries. Recent investors include CNA Financial Corporation (NYSE: CNA) and private banker Lester Crown, a former chairman of the Conference of Presidents of Major American Jewish Organizations.
FAIRE chairman Shlomo Grofman said that the NIS 50 million was part of FAIRE 2 Fund's NIS 230 million financing round. He noted that the fund's structure enabled it to continue investing in residential property even during a recession. "Despite the global crisis, especially in the US and UK, international investors continue to see Israeli residential real estate as a worthwhile investment channel," he said.
Grofman added, "It's true that the real estate industry in general feels the recession to some extent, but as far as residential real estate is concerned, we've lately been seeing the purchase of apartments for investment, not as residences.
FAIRE chairman Shlomo Grofman said that the NIS 50 million was part of FAIRE 2 Fund's NIS 230 million financing round. He noted that the fund's structure enabled it to continue investing in residential property even during a recession. "Despite the global crisis, especially in the US and UK, international investors continue to see Israeli residential real estate as a worthwhile investment channel," he said.
Grofman added, "It's true that the real estate industry in general feels the recession to some extent, but as far as residential real estate is concerned, we've lately been seeing the purchase of apartments for investment, not as residences.
Subscribe to:
Posts (Atom)