1998 Grocery List

The slowdown in real estate activity that started in 1997, continued in 1998 as well. According to betterment taxation figures, the number of apartment deals, both new and secondhand, dropped 10% to 105,000, compared to 1997. Despite the slowdown, regular activities continued, and a great number of large deals were forged in mergers, acquisitions, land tracts and offices.

On the other hand, there was meager activity in the commercial and industrial buildings sectors, with only a few large transactions. There was also a small number of million-dollar deals in luxury apartments, although the slump in the sector is quite prominent compared to 1995 and 1996. On the other hand, there was greatly increased activity in overseas acquisitions.

Here are details of some of the most outstanding deals in 1998:

Mergers and Acquisitions

1. Azorim purchased 50% of Mishkan from the Israel Corporation and Renaissance Fund, for NIS 280 million, which at the beginning of the year amounted to $80 million. Following the deal, Azorim holds 100% ownership of Shikun u’Pituach.

2. Bayside Land purchased 50% of Matam from Haifa Economic Development for NIS 240 million, which is currently $57.5 million.

3. The Moshe Aviv company purchased 80% of Zikit shares from the Flakowitz family for $46.5 million.

Tenders

1. Africa Israel and Menrav won the government compound tender, under which it will construct a 48,000 sq.m., 26 storey tower on Petach Tikva Road, corner of Kaplan Street, in Tel Aviv. The building will be leased to the government for twenty years at $15.1 per sq.m. a month.

2. Industrial Buildings, Secom and Ashtrom won the government compound tender to build a 26,000 sq.m. government compound in Haifa. The building will be let to the government in a long term lease, at $14 per sq.m. a month.

3. Secom and Ashtrom won a government compound tender to build a 40,000 sq.m. government compound in Beer Sheva. They will let 25,000 sq.m. to the government in a long term lease for $10.25 per sq.m. a month.

Offices - Sales

1. Clal Insurance purchased six floors of offices in Beit Rubinstein in Tel Aviv (near "Maariv" offices) from Avraham Rubinstein and Mario Laznik, for $17.5 a sq.m.

2. Mortgage Bank purchased four office floors (4,000 sq.m.) from Meshulam Levinstein in his office block at 23 Petach Tikva Road in Tel Aviv, for $12.75 million, including parking.

Offices - Rentals

1. The government housing administration rented 22,500 sq.m. from Yosef Moskowitz in two buildings in Yad Eliyahu, for $15 a sq.m. a month.

2. The government housing administration rented a 21,000 sq.m. building in Romema, Jerusalem from Pritzker and the Ofer Brothers, at $10 a sq.. a month.

3. The government housing administration rented 11,500 sq.m. in Givat Shaul, Jerusalem from Dankner, Pritzker and Ambassador, at $13 a sq.m. a month.

Luxury Apartments

1. Relatively unknown businessman Rafael Bio purchased two residential floors (2,000 sq.m.) in the Shaar Ha’ir project in Ramat Gan, for $8.1 million.

2. Yossi Vigiser a Mirabilis founder, purchased three penthouses on Hatzadazf Street in Jaffa from Pivco-Kastiel , for $4.1 million.

3. Developers Pritzker and Dankner sold a penthouse in a Haifa project to a private investor for $4 million, and another penthouse in the same building to a local doctor, for $3.4 million.

Israelis’ transactions abroad

1. Yitzhak Tshuva purchased four residential buildings in Canada, comprising 1,000 apartments and two commercial centers, for $59 million.

2. Tshuva purchased two buildings in London, Britain, for $40 million.

3. Azorim purchased a 6,400 sq.m. office block in London City, together with a British partner, for $36.6 million.

Published by Israel's Business Arena January 3, 1999