IDB Holding Corp. Ltd. (TASE:IDBH) chairman and CEO Nochi Dankner is seeking opportunities in the UK real estate market following his success with the investment in Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ).
IDB's real estate arm Property and Building Ltd. (TASE: PTBL) announced that it planned to seek investment properties abroad. Sources inform ''Globes'' that the company's primary target is income-producing properties in the UK, and that it planned to invest hundreds of millions of shekels. There are no concrete deals in the offing at this time.
In a notice to the Tel Aviv Stock Exchange (TASE), Property and Building said that it would collaborate with Rock Real Estate Partners Ltd., a company owned by the Schimmel family of the UK, and who are partners in the controlling core of IDB. Schimmel's Rock Real Estate Partners will provide services to the company, including finding properties, obtaining financing, and property management. Property and Buildings' shareholders still have to approve the agreement. The agreement is a party at interest deal.
Rock Real Estate Partners will receive 12.5% of any profits on the future sale of any properties purchased through the agreement.
The UK real estate market is in a deep crisis, following the collapse after a boom of several years.
Property and Building chairman Rafael Bisker said, "We believe that the global credit crisis has created a window of opportunity to buy tier-one income-producing property overseas at low prices. We intend to carefully and responsible examine these opportunities, and weigh transactions that will ensure the company's growth in the coming years."
Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2009
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