Yitzhak Teshuva and Shlomo Rubanenko are negotiating with the real estate department of US Bankers Trust, to form a $100 million real estate fund.
The object of the fund will be to invest moneys in supplementing the 40%-60% shareholders’ equity required of contractors by the banks, for financing construction projects. Investment in the shareholders’ equity supplementation fund will be made in consideration of half the profits from any project in which the fund is involved.
The initiating parties intend to invest moneys of their own in the fund. The investment strategy of Banker’s Trust calls for own investment. The group has designated David Friedman, former general manager of Bank Leumi, as chairman of the fund.
The initiating parties are to meet today (Tuesday) with Bankers Trust attorneys to present the entire programme. The programme was presented last night at the Holiday Inn Hotel in Tel-Aviv, by Meir Rahav, Rubanenko’s finance manager, to representatives of the Tefahot and Mercantile banks.
Bankers Trust attorneys last night made a presentation to senior officers of the initiating parties, in the Israeli real estate sector, and announced their intention of being involved in the that market, which, they say, holds out business opportunities. It is estimated that the bank intends to invest in Israel in partnerships holding assets valued at $200-300 million.