Azorim Investment, Development and Construction Ltd. (TASE: AZRM), controlled by chairman Shaya Boymelgreen, has laid off 15 employees at company headquarters. Azorim CEO Mati Dov told "Globes" today that the company had no plans to sell properties in Israel at this time as part of its streamlining measures.
Including previous layoffs, Azorim has now let go 25 employees, a quarter of its workforce. The company has laid off headquarters, project management, marketing, and bookkeeping staff. The savings from the layoffs will only be reflected in Azorim's results for 2010. Together with other streamlining measures, the company hopes to save NIS 25 million in administrative costs next year compared with last year.
Thursday, April 30, 2009
Thursday, April 23, 2009
US realty guru: Israel a prime real estate destination
Considered an industry guru, Buffini owns the biggest real estate and business coaching and training company in the US. He arrived in Israel recently to lecture to local real estate agents.
The business of real estate, he told his listeners, can thrive even in these troubled times. Buffini's teachings advocate using networking and existing business contact, rather than costly advertising, to drum up business.
Realtors, he said, must take the time and invest in creating personal relationships: Every person, on average, knows about 285 people, so if you invest in cultivating 100 relationships, you can increase you potential cliental by 28,500 people.
The business of real estate, he told his listeners, can thrive even in these troubled times. Buffini's teachings advocate using networking and existing business contact, rather than costly advertising, to drum up business.
Realtors, he said, must take the time and invest in creating personal relationships: Every person, on average, knows about 285 people, so if you invest in cultivating 100 relationships, you can increase you potential cliental by 28,500 people.
Wednesday, April 22, 2009
Africa Israel to sell Tel Aviv property
TEL AVIV, April 22 (Reuters) - Africa Israel Properties (AFPR.TA), a subsidiary of real estate developer Africa Israel Investments (AFIL01.TA), said on Wednesday it has agreed to sell a Tel Aviv property for 166.5 million shekels ($39.5 million).
The company said it will sell 95 percent of the Africa Israel Tower in central Tel Aviv and 50 percent of the unused building rights in the property to an entity controlled by foreign investors.
Upon completion of the deal Africa Israel will record a pretax capital gain of 17 million shekels.
The buyer has two-year options to buy the remaining 5 percent in Africa Israel Tower for 7.7 million shekels and the remaining 50 percent of the unused building rights for 20 million shekels.
The company said it will sell 95 percent of the Africa Israel Tower in central Tel Aviv and 50 percent of the unused building rights in the property to an entity controlled by foreign investors.
Upon completion of the deal Africa Israel will record a pretax capital gain of 17 million shekels.
The buyer has two-year options to buy the remaining 5 percent in Africa Israel Tower for 7.7 million shekels and the remaining 50 percent of the unused building rights for 20 million shekels.
Saturday, April 18, 2009
Police drops Olmert's real estate case
Israeli police have closed one of the investigations into outgoing prime minister Ehud Olemrt's corruption scandals, citing lack of evidence.
The case looked into allegations around a suspicious real estate deal, saying Olmert -- then the mayor of Jerusalem (al-Quds) -- purchased a home in an exclusive neighborhood in the city far below market price in exchange for favors to the builder.
Police spokesman Micky Rosenfeld said on Thursday that the "Cremieux Street case" had to be dropped as the police had not been able to find evidence "that illegal acts were carried out on behalf of Ehud Olmert."
Mounting criticism of Olmert's poor performance during incumbency in the Israeli cabinet as trade and industry minister (2003-2006) along with his mistake-riddled period in prime minister's office and particularly during the 2006 Lebanon war led him to announce his resignation in September.
The case looked into allegations around a suspicious real estate deal, saying Olmert -- then the mayor of Jerusalem (al-Quds) -- purchased a home in an exclusive neighborhood in the city far below market price in exchange for favors to the builder.
Police spokesman Micky Rosenfeld said on Thursday that the "Cremieux Street case" had to be dropped as the police had not been able to find evidence "that illegal acts were carried out on behalf of Ehud Olmert."
Mounting criticism of Olmert's poor performance during incumbency in the Israeli cabinet as trade and industry minister (2003-2006) along with his mistake-riddled period in prime minister's office and particularly during the 2006 Lebanon war led him to announce his resignation in September.
Friday, April 17, 2009
Fischer revived the stock market and kept real estate prices up
It is still hard to predict whether the repeated lowering of interest rates by Bank of Israel Governor Stanley Fischer has contributed to increased employment and economic growth or to the reduction in the cost of credit for the business sector. However, it can safely be said that Fischer's actions have indeed worked in two areas: housing prices and the stock market. Tel Aviv stocks hasverecovered sharply since the beginning of the year, and bond prices have rebounded impressively. The TA-100 is up 27% so far this year, and real estate and shares are up even more.
What has happened on the TASE over the past few months is the result of a number of developments - and certainly not just due to lower interest rates. But the rates, which are nearing zero, also have had a major influence. The lack of serious alternatives to stocks, such as bank deposits, bonds or money-market funds, has forced investors back into the stock market - and has also affected
What has happened on the TASE over the past few months is the result of a number of developments - and certainly not just due to lower interest rates. But the rates, which are nearing zero, also have had a major influence. The lack of serious alternatives to stocks, such as bank deposits, bonds or money-market funds, has forced investors back into the stock market - and has also affected
Wednesday, April 15, 2009
Monday, April 13, 2009
S&P Maalot puts Gazit bonds on credit watch neg
TEL AVIV, April 13 (Reuters) - Standard & Poor's Maalot said on Monday it has placed bonds of Israeli real estate investment firm Gazit-Globe Ltd (GLOB.TA: Quote, Profile, Research) on "credit watch negative", citing an erosion in the company's financial situation.
S&P Maalot noted that the company made large write-offs in the fourth quarter due to a decline in the value of its property for investment.
Gazit-Globe posted a fourth-quarter net loss of 865 million shekels ($209 million), compared with a net profit of 105 million a year earlier.
"We plan to examine over the near term the worsening in the financial situation, the forecasts for the coming years and the appropriateness of the current ratings," the ratings agency said in a statement.
S&P Maalot noted that the company made large write-offs in the fourth quarter due to a decline in the value of its property for investment.
Gazit-Globe posted a fourth-quarter net loss of 865 million shekels ($209 million), compared with a net profit of 105 million a year earlier.
"We plan to examine over the near term the worsening in the financial situation, the forecasts for the coming years and the appropriateness of the current ratings," the ratings agency said in a statement.
Saturday, April 11, 2009
The current Real Estate 15 Index companies have an aggregate cap of NIS 13 billion
The real estate bubble that began in 2003 burst in the summer of 2007 with the sub-prime mortgage crisis in the US, which led to the global credit crunch and worst crises in the financial markets and real economies in 80 years. The real estate collapse left a wasteland in its wake, devastating the shareholders and bondholders of companies.
The current companies in the Tel Aviv Stock Exchange (TASE) Real Estate 15 Index had an aggregate market cap of NIS 13 billion at the end of 2008, less than half the value of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) alone - the leading company in the index - which had a market cap of NIS 28.5 billion at its peak in May 2007.
The current companies in the Tel Aviv Stock Exchange (TASE) Real Estate 15 Index had an aggregate market cap of NIS 13 billion at the end of 2008, less than half the value of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) alone - the leading company in the index - which had a market cap of NIS 28.5 billion at its peak in May 2007.
Friday, April 10, 2009
Africa Israel empire, sold his holdings in the Ramat Aviv mall
At least, a memorandum of understanding has been signed, pricing the mall at NIS 1.53 billion. "I called Yossi [Perry, Melisron CEO] to congratulate him and wish him the best of luck. They bought the best mall in Israel," said Moshe Rosenblum, leader of British Israel's malls division. British Israel had also been in the running for Ramat Aviv, he said, but decided to bow out because it was "too perfect" - the group couldn't "better" it, meaning, make improvements and sell it onward for a profit.
Rosenblum adds that the rental prices that businesses at the mall pay are sky-high, and he doubts that the return on investment can be seriously improved. Possibly returns on the mall could be bettered by opening it on Shabbat, but at this stage, says the mall's management, there's no such plan in the works.
Leviev is far from being the only businessman making moves to ease liquidity, whether in order to pay back bondholders, banks and other creditors or to improve financial ratios. These are hard times, the global economy is contracting hard and jittery banks are clenching their fists. If once, companies - including some decidedly iffy ones - could routinely take out fresh loans to repay old ones, that isn't the case any more.
Rosenblum adds that the rental prices that businesses at the mall pay are sky-high, and he doubts that the return on investment can be seriously improved. Possibly returns on the mall could be bettered by opening it on Shabbat, but at this stage, says the mall's management, there's no such plan in the works.
Leviev is far from being the only businessman making moves to ease liquidity, whether in order to pay back bondholders, banks and other creditors or to improve financial ratios. These are hard times, the global economy is contracting hard and jittery banks are clenching their fists. If once, companies - including some decidedly iffy ones - could routinely take out fresh loans to repay old ones, that isn't the case any more.
Friday, April 03, 2009
Netanyahu arrives, the market celebrates
The optimism on Wall Street over the past few days spread to Tel Aviv yesterday, and the local market responded with big gains.
Yesterday the Tel Aviv Stock Exchange hit its highest level in five months as the TA-25 index of blue-chips jumped 5.3% to close at 765 points, and the broader TA-100 rose 1.1% to end the day just under the 700 barrier at 699 points
The Real Estate-15 index was up 5.7% for the day, and has now gained 50% so far in 2009. The recovery in the corporate bond market has had a good effect on the highly-leveraged real estate sector, and Africa Israel gained 9.2% yesterday, with the company's bonds gaining 7% in price.
Yesterday the Tel Aviv Stock Exchange hit its highest level in five months as the TA-25 index of blue-chips jumped 5.3% to close at 765 points, and the broader TA-100 rose 1.1% to end the day just under the 700 barrier at 699 points
The Real Estate-15 index was up 5.7% for the day, and has now gained 50% so far in 2009. The recovery in the corporate bond market has had a good effect on the highly-leveraged real estate sector, and Africa Israel gained 9.2% yesterday, with the company's bonds gaining 7% in price.
Wednesday, April 01, 2009
Leviev`s company loses NIS 4.8 billion in 2008
Lev Leviev's Africa Israel Investments lost more in the fourth quarter of 2008 than in the previous three quarters combined.
Annual losses for 2008 totaled NIS 4.8 billion, with NIS 2.7 billion sustained in the final quarter. In 2007, Africa Israel netted some NIS 4.4 billion, thanks largely to the floating of Russian subsidiary AFI Developments. The main reason for last year's massive losses was the crash in real estate values in the United States and Russia. Africa Israel issued a profit warning earlier this month, so the company's bottom line came as no surprise to investors.
The depreciation in the inventory of Africa Israel's land and buildings for sale contributed NIS 1.3 billion to the company's losses, and projects under construction lost NIS 2 billion of their value.
Africa Israel's fourth quarter revenues totaled NIS 1.2 billion, compared to NIS 2.8 billion in the parallel. Most of the revenues came from land and construction deals.
Annual losses for 2008 totaled NIS 4.8 billion, with NIS 2.7 billion sustained in the final quarter. In 2007, Africa Israel netted some NIS 4.4 billion, thanks largely to the floating of Russian subsidiary AFI Developments. The main reason for last year's massive losses was the crash in real estate values in the United States and Russia. Africa Israel issued a profit warning earlier this month, so the company's bottom line came as no surprise to investors.
The depreciation in the inventory of Africa Israel's land and buildings for sale contributed NIS 1.3 billion to the company's losses, and projects under construction lost NIS 2 billion of their value.
Africa Israel's fourth quarter revenues totaled NIS 1.2 billion, compared to NIS 2.8 billion in the parallel. Most of the revenues came from land and construction deals.
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