Tagor Capital will own 25% and Patron Capital 75% of the company acquired to handle the projects.
Tagor Capital Ltd. (TASE:TGCP) and Patron Capital Ltd. have signed a four-year cooperation agreement to invest €56 million (NIS 307 million) in shareholders equity developing residential and commercial properties in Romania. The equity will leverage more than NIS 1 billion in investments. The Romanian projects will be handled through Netherlands-registered Korbein Corporation BV, which was acquired by the subsidiaries of the two companies: Tagor Eastern Europe Ltd., which will own 25% of Korbein, and Patron Pipera Realty Sarl, which will own 75%.
Tagor and Patron Capital agreed that Tagor will be eligible to half of Korbein’s profit, after the return on investment by the parties, and subject to Korbein meeting certain financial targets.
Tagor will locate, examine and buy land, and will manage the projects, for which it will receive a quarterly management fee. During the negotiations, the companies jointly acquired 143 acres in Romania zoned for residential and commercial projects.
Published by Globes [online], Israel business news - www.globes.co.il - on May 6, 2007
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