Levvi and Reality won a tender from the Israel Land Authority last week (Monday, 7.5.17), beating 18 competitors. The contract will be signed in the coming weeks Rami announced that the reality fund has won the tender, along with two partners, whose names she did not reveal.
The plot is intended for the construction of 60 luxury apartments. The master plan does allow the building to be turned into a hotel, as well as to operate a commercial floor in it. However, Levavi and Reality estimate that the chances of profitability in the apartments are the highest. Will pay NIS 3.75 million for land for the apartment, including taxes.
Also purchased an office building and a hotel
This is Levavi Reality’s second joint transaction, and Levbi’s third real estate transaction (at least). 3,400 square meters, and the buyers paid NIS 37 million for it.
In 2008, Levavi Sheled purchased a hotel at 5 Beit Eshel Street, the flea market, Jaffa. He paid the receiver $ 6 million. My heart completed the construction of the hotel. It is currently operated by Atlas Hotels.
Yitzhak Levavi is a second generation of a diamond family. His father, Eliezer, who was an Irgun activist in his youth and later entered the industry, received the “Dear Diamond Industry Award” years ago. His sons Yitzhak and Noam continue in the industry.
First exposure of a transaction in the private company
Levavi is active in the diamond and real estate business through a number of private companies. In 2008, he acquired control of the public company Glitz, changed its name to Real Estate’s and put his real estate business into it. In August last year, Levavi bought his shares in Real Estate’s from the public, turning it into a private company. Since then, the company has not reported any activity. The purchase of the land in Jaffa is the first exposure of a real estate transaction made by the company in its private ownership.
Levavi decided, apparently for tax reasons, to split the purchase deal in two. He will purchase 33% of the land through Nendell’s and 33% through Mishkenot Asher, which is also fully owned by him.
A reality fund often finances the purchase of assets in partnership with investors and private entrepreneurs. The share of the entrepreneurs in the transaction varies according to the type of transaction and the investment in it. The two joint ventures with Levavi are part of the fund’s policy.