Top 5 real estate deals of the year
Despite slump in the field, the Israeli real estate business has seen some interesting contracts signed last year. Ynet lists the top five real estate deals of the year of 5765
Inspite of the slump in the Israeli real estate field, the Jewish year of 5765 has also brought with it reasons for optimism.
Alongside the construction crisis along the coutry's periphery and the collapse of major players in the business, signs of recovery were noticeable as well.
Most noteworthy are indications that local companies have managed to overcome geographic and economic barriers, and make headway in Israel and the world.
The deals chosen carry financial or political significance, and have to a great extent influenced the real estate field in Israel as a whole.
1. Tshuva buys The Plaza Hotel
Yitzhak Tshuva's purchase of the Plaza Hotel in Manhattan marked yet another peak in the real estate tycoon's career.
Tshuva bought the hotel, a historical and cultural landmark of the Big Apple in August 2004 from Saudi crown prince al-Walid ibn-Talal and a Singaporian hotel tycoon for USD 675 million.
The hotel, which is scheduled to reopen in May 2006 following extensive renovations, stood in the heart of a long dispute between Tshuva and Plaza employees, city council officials and businessmen over the project aimed at transforming the building from a hotel to a residential and a business complex as well.
Tshuva is expected to see hundreds of millions of dollars in revenues from the deal.
2. Mehadrin gains from disengagement
Mehadrin, a company controlled by Nochi Dankner and the Phoenix company, and chaired by Yonatan Bassi, chairman of the Disengagement Administration, is one of the big earners from Israel's pullout from Gaza.
A substantial land strip near the southern town of Ashkelon, which is owned by the company, has been designated by the state to become an area in which 1,600 new houses will be built for evacuated settlers.
The Israeli government paid Mehadrin NIS 20 million (USD 4.3 million) for the area.
3. Most expensive house in Israel sold
Jewish Austrian businessman Martin Schlaff, one of the Jericho Casino owners, has sold his luxurious villa in the prestigious Herzliya Pituach neighborhood near Tel Aviv for USD 22 million.
The villa was sold to Viviane and Zaki Rakib, shareholders and co-founders of Terayon.
The purchase is another proof that despite the general slump in the field, luxury properties in Israel are still attractive and sell easily.
4. Amot real estate company worth over USD 200 million
Amot Investments, a major Israeli real estate company with equity capital of NIS 700 million (USD 159 million), has sold 80 percent of the company to Alonei Chetz for NIS 675 million (USD 145.5 million), a sum which represents a value of NIS 956 million (USD 206 million) for Amot.
The deal signifies success for Amot shareholders, who managed to sell the company in well above the minimum selling price, which was set for NIS 818 million (USD 176 million).
5. Giant deal signed in Germany
Israelis are closng real estate deals all over the globe, but one in particular signed this year stands above the rest.
Israeli companies Delek Group Ltd. and Electra Real Estate, together with businessman Yigal Ahuvi have purchase 7 profit yielding properties in Germany this year, for a sum of approximately EURO 273 million (about USD 330 million).
The companies are expected to gain an annual return of seven and a half percent (approximately USD 23 million) on the lease of the commercial properties.
