Investment house Excellence Investments Ltd. (TASE: EXCE) continues to lead Israel’s financial industry in all matters relating to the range of activities in which it participates. After capturing the exchange traded funds market, which became a key component of its business, Excellence today announced the completion of an institutional financing round for the company’s new Real Estate Investment Trust (REIT). Excellence is the first company in the market to gain a foothold in Israel’s emerging REIT market, which is expected to become a significant area of business for the company in the near term. Excellence Investments chairman Ron Biram, Gil Deutsch and Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) control the company.
Shmuel Sayad will manage REIT 1, Excellence’s new REIT. Sayad is veteran real estate figure, who has served as CEO of Industrial Buildings Corp. (TASE: IBLD), CEO of Naveh Gad Construction and Development Ltd., a subsidiary of Property and Building Ltd. (TASE: PTBL). Ariel Aven will serve as chairman of REIT 1. Aven previously served as executive VP of Gazit-Globe Ltd. (TASE: GLOB), before recently striking out on his own.
REIT 1 raised NIS 140 million from investment institutions in its first issue a few days ago, ahead of closing its first two transactions. “We’re in advanced negotiations to buy two properties. One is an office block, and the other is a combined office and commercial building. The purchases will total about NIS 150 million, and the return on investment will be 8.5-9.5%,” said Sayad.
Sayad added that in order to be eligible for the tax breaks available to REITs, Excellence has undertaken to float REIT 1 through a public issue over the coming year.
Published by Globes [online], Israel business news - www.globes.co.il - on April 30, 2006
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