Polar Investments Ltd. (TASE: PLR) is partnering in the purchase of land in Manhattan. Polar's share of the deal is 15%. The buyers bought a $41 million note secured by land. The seller was the lender, a financial institution. Polar's share of the purchase is $3 million. The buyers financed the purchase with a seller's loan.
After the buyers convert the debt into equity on the property, they intend to build a 200,000-square foot residential and hotel project on the site.
Since taking office in June 2009, Polar CEO Uri Shani has been leading the company's strategic plan to sell non-core businesses in Jerusalem's light rail consortium CityPass (a 17.5% stake), and the Israeli franchise of tourism services company Group RCI Inc. in order to focus on real estate.
In response to queries by "Globes", Polar Investments declined to provide additional information, such as the location of the land in Manhattan, or its partners in the project.
Zil Feldman's HFZ Capital Group and Tamir Sapir's Sapir Organization jointly own 39.9% of Polar Investments through FD Holdings Ltd., and Giron Development and Building Ltd. (TASE: GRON) owns 32.55%. Polar Investment's share fell 3.9% by mid-afternoon to NIS 18.25, giving a market cap of NIS 156 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 11, 2010
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