Donald Trump completes $44m purchase of Elite site

Trump plans to invest $300 million in the construction of a 70-floor luxury high-rise on the site in Ramat Gan.

US real estate tycoon Donald Trump and Crescent Heights announced today that they had completed the acquisition of the Strauss-Elite (TASE: STEL) compound in Ramat Gan for $44 million. Trump and Crescent Heights will invest $300 million in the construction of a luxury exclusive 70-floor high-rise. Elite is expected to make a capital gain of NIS 120 million on the deal. Located opposite the Diamond Exchange, “Trump Tower” is Trump’s first project in Israel and will be the country’s tallest high-rise.

In March 2005, Elite signed an MOU for the sale of the compound to Weinstein and Katan, which made an initial down payment of $1 million. They were to have made a further payment of $2.5 million, but when they failed to do so Elite informed them in writing that the deal had been voided due to their failure to make the required payments. Trump and Crescent Heights, controlled by Sonny Kahn, offered a similar price.

Donald Trump said today, “We are developing an asset that will have a clear identifying mark, and will set a new benchmark for luxury apartment blocks in Israel.” He added that he was confident that Israel was headed in one direction only - upward. “I have been negotiating on this site for more than a year and I’m very excited,” he said.

Crescent Heights national VP marketing Brian Duchman said, “Donald Trump is an international icon who sets new standards in luxury accommodation. Israel is ready for the development of high-quality residential properties.”

Trump founded the Trump Organization in 1980 as an umbrella grouping for all his real estate projects and affiliated entities. He is currently developing luxury apartment schemes, hotels and golf courses in Chicago, Las Vegas, Los Angeles, New Jersey, Aberdeen, Scotland, Seoul, South Korea, and elsewhere.

Crescent Heights was founded more than 25 years ago and is one the largest housing development corporations in the US. It is represented in Israel by Tito NS Architects, which has also been engaged as designer for the Ramat Gan project.

Published by Globes [online], Israel business news - www.globes.co.il - on June 25, 2006

© Copyright of Globes Publisher Itonut (1983) Ltd. 2006

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