TEL AVIV, Jan 28 (Reuters) - Israeli conglomerate Africa Israel Investments (AFIL01.TA) said on Wednesday it signed a memorandum of understanding to sell its 50 percent stake in the Gottex swimwear venture to its partners for $50 million.
Africa Israel said it would receive $42 million up front and the rest over four years, if Gottex makes profits, from the foreign buyers, who already own the other half of Gottex.
Africa Israel will post a pretax gain of 90 million shekels ($22.4 million) from the sale.
Gottex designs beachwear in Israel and abroad through Gottex Models Ltd and Christina America Inc. It also markets clothing brands Zara, Pull and Bear and Massimo Dutti in Israel under licence from Spain's Inditex SA (ITX.MC).
Saturday, January 31, 2009
Thursday, January 29, 2009
US, French Jews lead spike in real estate
ZMH Hammerman Ltd. and Eurocom Real Estate Ltd. report growing interest in their Neve Zedek-by-the-Sea project in Tel Aviv in the wake of the repercussion of Operation Cast Lead in Israel and overseas.
In a press release, the two companies stated, "A wave of inquiries from foreign residents has flooded our sales office… A wave of patriotism by US and French Jews flooded us with inquiries about the Neve Zedek-by-the-Sea project during the war: 77 inquiries from France and 88 from the US."
In a press release, the two companies stated, "A wave of inquiries from foreign residents has flooded our sales office… A wave of patriotism by US and French Jews flooded us with inquiries about the Neve Zedek-by-the-Sea project during the war: 77 inquiries from France and 88 from the US."
Monday, January 26, 2009
Central bank: Israeli economy contracting
Israel's central bank says the country's economy is contracting. A new report adjusts predictions downward as part of the global economic crisis.
The central bank issued its report on Sunday. It says Israel's economy will shrink by 0.2 percent this year. In contrast, an earlier prediction forecast 1.5 percent growth. Other predictions in the new report are an unemployment rate of 7.6 percent and a government deficit equal to about 4 percent of the gross domestic product. Part of that is the cost of Israel's just-completed offensive in Gaza.
Yosef Saadon, a spokesman for the Bank of Israel, said, "We are producing much less than we predicted and much less than in previous years." But he said it is not technically a recession.
The central bank issued its report on Sunday. It says Israel's economy will shrink by 0.2 percent this year. In contrast, an earlier prediction forecast 1.5 percent growth. Other predictions in the new report are an unemployment rate of 7.6 percent and a government deficit equal to about 4 percent of the gross domestic product. Part of that is the cost of Israel's just-completed offensive in Gaza.
Yosef Saadon, a spokesman for the Bank of Israel, said, "We are producing much less than we predicted and much less than in previous years." But he said it is not technically a recession.
Saturday, January 24, 2009
Israeli citizen living abroad is planning to use his funds to buy an apartment
Q: Hi, my father, an Israeli citizen living abroad is planning to use his funds to buy an apartment for myself and my sisters in or around Tel Aviv. My status in Israel is ezrach oleh as I made aliyah in January 08. Would purchasing an apartment under his name, or mine name have any difference as to what discounts the government give. Also, can you suggest any suitable affordable neighborhood in/around Tel Aviv for young 21-24 working people.
A: If your dad has NEVER owned any home in Israel, he might have some small rights as a first time buyer. You on the other hand, have MORE rights as an olah chadasha. You are entitled to a small subsidized olah mortgage, plus a significant discount on the one-time purchase tax called mas Rechisha. It sounds to me like it would be best to be under yourname. Probably, the ownership should be in one of your names, not in multiple names,,,
A: If your dad has NEVER owned any home in Israel, he might have some small rights as a first time buyer. You on the other hand, have MORE rights as an olah chadasha. You are entitled to a small subsidized olah mortgage, plus a significant discount on the one-time purchase tax called mas Rechisha. It sounds to me like it would be best to be under yourname. Probably, the ownership should be in one of your names, not in multiple names,,,
Thursday, January 22, 2009
Moody's reports negative outlook for Israel's banks
Moody's Investor Service today issued a report entitled "Negative for Israeli banking system." The report cited the expected slowdown in the domestic economy and the impact of the global crisis as the reasons for its negative outlook.
Moody's negative outlook for the Israeli banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades.
Moody's negative outlook for the Israeli banking system expresses the rating agency's view on the likely future direction of fundamental credit conditions in the industry over the next 12 to 18 months. It does not represent a projection of rating upgrades versus downgrades.
Tuesday, January 20, 2009
The Global Economic Crisis - Its Effect on Israeli Real Estate
As a result of the high exchange rate, much of the real estate market (whether for second hand or new apartments) was priced in dollars, and simply paid for in shekels at the representative rate of the dollar on the date of payment. This allowed foreigners with strong currencies to purchase real estate in Israel without worrying about currency fluctuations.
Additionally, real estate prices abroad were also high, so that a foreigner could sell his house in New York or London, get an excellent price and have plenty of money to purchase real estate in Israel. Circumstances combined together to make the Israeli real estate market an attractive one.
About a year ago the situation began to change. Real estate markets in the U.S. and England began to fall and it became difficult for people to sell their properties before making Aliya.
Additionally, real estate prices abroad were also high, so that a foreigner could sell his house in New York or London, get an excellent price and have plenty of money to purchase real estate in Israel. Circumstances combined together to make the Israeli real estate market an attractive one.
About a year ago the situation began to change. Real estate markets in the U.S. and England began to fall and it became difficult for people to sell their properties before making Aliya.
Monday, January 19, 2009
Billionaires Burn Israeli Savers on N.Y., U.K. Deals
Jan. 14 (Bloomberg) -- Israeli pension funds helped diamond mogul Lev Leviev snap up Manhattan real estate, including the former New York Times building, in 2007. Now they’re sharing in his losses as property prices plunge, dragging down the value of corporate bonds that backed the deals.
Fellow billionaire Yitzhak Tshuva has the same problem after the foray by his Delek Real Estate Ltd. into British property and roadside restaurants helped force its bonds down 73 percent. Pension funds and individual investors lost about 20 billion shekels ($5.1 billion), or a quarter of what they had invested in corporate bonds, as yields fell in the four months to November.
Now, under threat of a strike by Israel’s biggest union over pension losses, the government is proposing a bailout to help close the savings gap for people near retirement age. Concern that some companies could be wiped out helped drag the Tel Aviv Stock Exchange TA-25 Index down 44 percent in the past year.
Fellow billionaire Yitzhak Tshuva has the same problem after the foray by his Delek Real Estate Ltd. into British property and roadside restaurants helped force its bonds down 73 percent. Pension funds and individual investors lost about 20 billion shekels ($5.1 billion), or a quarter of what they had invested in corporate bonds, as yields fell in the four months to November.
Now, under threat of a strike by Israel’s biggest union over pension losses, the government is proposing a bailout to help close the savings gap for people near retirement age. Concern that some companies could be wiped out helped drag the Tel Aviv Stock Exchange TA-25 Index down 44 percent in the past year.
Friday, January 16, 2009
Tarragon Corp files for Chapter 11 bankruptcy
Tarragon Corp, a residential real estate developer, has filed for Chapter 11 bankruptcy due to dropping real estate values and slower sales in its homebuilding division, the company said on Monday.
An affiliate of Israel's ARKO Holdings has committed to a $6.25 million debtor-in-possession financing facility, Tarragon said in a press release.
The company said it has adequate current liquidity and it plans to continue operations as usual while it reorganizes.
An affiliate of Israel's ARKO Holdings has committed to a $6.25 million debtor-in-possession financing facility, Tarragon said in a press release.
The company said it has adequate current liquidity and it plans to continue operations as usual while it reorganizes.
Tuesday, January 13, 2009
Africa Israel chiefs to take 10 pct pay cut
TEL AVIV, Jan 13 (Reuters) - Top officials at Israeli real estate developer Africa Israel Investments (AFIL01.TA) said on Tuesday they would take a 10 percent pay cut in 2009 as part of efficiency measures aimed at preparing the company for the global economic crisis.
The officials are Chief Executive Officer Izzy Cohen, Vice President of Marketing Tzvia Leviev Elazorov and Vice Chairman Nadav Grinshpon, who receives monthly compensation for advisory services.
Executives at other Israeli companies, such as Bank Hapoalim (POLI.TA) and the IDB Development (IDBD.TA) conglomerate, have taken similar steps in recent months.
Africa Israel is controlled by its chairman, billionaire diamond dealer Lev Leviev, and also has interests in energy, hotels, infrastructure and fashion. It owns 71 percent of AFI Development (AFIDLq.L), a Russia-focused real estate company.
The officials are Chief Executive Officer Izzy Cohen, Vice President of Marketing Tzvia Leviev Elazorov and Vice Chairman Nadav Grinshpon, who receives monthly compensation for advisory services.
Executives at other Israeli companies, such as Bank Hapoalim (POLI.TA) and the IDB Development (IDBD.TA) conglomerate, have taken similar steps in recent months.
Africa Israel is controlled by its chairman, billionaire diamond dealer Lev Leviev, and also has interests in energy, hotels, infrastructure and fashion. It owns 71 percent of AFI Development (AFIDLq.L), a Russia-focused real estate company.
Saturday, January 10, 2009
Israel and the Global Financial Crisis
The world's credit markets are clogged, a situation unprecedented in the capitalist era. And what about Tel Aviv? The captains of Israel's economy soothe the public: our banks are not "exposed" to the same degree as America's. But will the crisis pass us by? True, the United States was unique in making an industry out of financial speculation. But in the era of the global village, distances shorten. Wall Street determines the ups and downs of its Israeli equivalent, Ahad Ha'am (the name translates, ironically, as "One of the People"). The immune system of Israel's economy is weaker by far than America's, while its dependence on the latter is great.
That dependence is not just economic. It is also ideological. In the 1980s, Israel abandoned the worn-out Zionist-socialist creed in favor of an even older one, which produced two world wars and fascism. This is capitalism—but served up in modern dress, global and computer-based. Like post-Soviet Russia, Israel has privatized itself, selling a cooperative economy for peanuts to a few tycoons. Such tycoons have sprouted up among all nations and religions. Until the present crisis, they ran the global economy.
That dependence is not just economic. It is also ideological. In the 1980s, Israel abandoned the worn-out Zionist-socialist creed in favor of an even older one, which produced two world wars and fascism. This is capitalism—but served up in modern dress, global and computer-based. Like post-Soviet Russia, Israel has privatized itself, selling a cooperative economy for peanuts to a few tycoons. Such tycoons have sprouted up among all nations and religions. Until the present crisis, they ran the global economy.
Friday, January 09, 2009
Israeli Stocks, Shekel Drop as Rockets From Lebanon Hit North
Jan. 8 (Bloomberg) -- Israeli stocks and the shekel fell after rockets fired from Lebanon struck northern Israel, raising concern the conflict with Hamas in the southern Gaza Strip will expand to other borders.
Bank Leumi Le-Israel Ltd. and Bank Hapoalim Ltd., Israel’s largest banks, led the decline. Israel Chemicals Ltd., which extracts minerals from the Dead Sea to make fertilizers, dropped on a slide in commodities. The shekel lost as much as 1.3 percent against the dollar to 3.9315, the lowest in almost a month.
“Investors are wary of the possibility of an escalation and possible fighting on two fronts, which could then bring the markets further down here,” said Itamar Casif, head of capital market research at First International Bank of Israel Ltd., the country’s fifth-largest lender.
Bank Leumi Le-Israel Ltd. and Bank Hapoalim Ltd., Israel’s largest banks, led the decline. Israel Chemicals Ltd., which extracts minerals from the Dead Sea to make fertilizers, dropped on a slide in commodities. The shekel lost as much as 1.3 percent against the dollar to 3.9315, the lowest in almost a month.
“Investors are wary of the possibility of an escalation and possible fighting on two fronts, which could then bring the markets further down here,” said Itamar Casif, head of capital market research at First International Bank of Israel Ltd., the country’s fifth-largest lender.
Sunday, January 04, 2009
Africa-Israel deal in Savyon hits snag
The Hagag buyer's group organized to purchase lots in Africa-Israel Investments Ltd.'s (TASE:AFIL; Pink Sheets:AFIVY) housing project in the Tel Aviv suburb of Savyon has bought fewer than half the 75 lots that it committed to buy. The company reports that 30 lots have been sold, but local real estate agents say that the actual figure is 15.
Two months ago, Africa-Israel, controlled by chairman Lev Leviev, subsidiary Africa-Israel Residences Ltd. (TASE:AFHS) signed an agreement with a buyer's group organized by developer Ido Hagag and his brother, Adv. Yitzhak Hagag, to buy 75 lots for the company's luxury project in Savyon. The Hajaj group was given an option to buy the lots for NIS 190 million, 30-40% less than the price at which Africa-Israel has been marketing the lots on the open market since December 2007.
Two months ago, Africa-Israel, controlled by chairman Lev Leviev, subsidiary Africa-Israel Residences Ltd. (TASE:AFHS) signed an agreement with a buyer's group organized by developer Ido Hagag and his brother, Adv. Yitzhak Hagag, to buy 75 lots for the company's luxury project in Savyon. The Hajaj group was given an option to buy the lots for NIS 190 million, 30-40% less than the price at which Africa-Israel has been marketing the lots on the open market since December 2007.
Friday, January 02, 2009
Posh Israeli suburb grows out of a farming co-op
"The real estate boom we've had is all because of our location," said Silberstein, who bought his home in Beit Zayit 12 years ago. "It was nothing intentional on our part. If people had some money, they bought here; now you actually have to be a little rich."
There are 400 homes along the town's tree-lined, flowering lanes and 1,800 residents, including about 100 families who have been here a long time and have significant properties like orchards, cultivated fields and, in at least one case, a horse ranch. There is also the Beit Zayit lake, a reservoir that has become Jerusalem Metropolitan Park, a public recreation area with paddle boats and walking trails.
Given the real estate changes in the neighborhood, "it's absurd to still call this a moshav," said Ovad Shalibo, another native-born son who owns Shalibo Realty, which handles many of the real estate deals in Beit Zayit and other similar moshav communities. Still, adds Shalibo, many of the "real money buyers" - Americans, French, Russians and British - only began buying in Beit Zayit recently, building mansion-like homes that they may or may not use as permanent residences. Prices are $5 million for about 5,500 square meters, or 59,000 square feet.
There are 400 homes along the town's tree-lined, flowering lanes and 1,800 residents, including about 100 families who have been here a long time and have significant properties like orchards, cultivated fields and, in at least one case, a horse ranch. There is also the Beit Zayit lake, a reservoir that has become Jerusalem Metropolitan Park, a public recreation area with paddle boats and walking trails.
Given the real estate changes in the neighborhood, "it's absurd to still call this a moshav," said Ovad Shalibo, another native-born son who owns Shalibo Realty, which handles many of the real estate deals in Beit Zayit and other similar moshav communities. Still, adds Shalibo, many of the "real money buyers" - Americans, French, Russians and British - only began buying in Beit Zayit recently, building mansion-like homes that they may or may not use as permanent residences. Prices are $5 million for about 5,500 square meters, or 59,000 square feet.
Subscribe to:
Posts (Atom)