Adi Keizman-controlled ADO Group Ltd. (TASE: ADO) is planning to expand its real estate business in Israel, after its German projects failed to get off the ground. The company has set up a joint venture, Oreha, with developer Ran Efrati, who specializes in boutique hotels in Tel Aviv.
Oreha plans to build four residential projects in Tel Aviv, including a building with 100 apartments in the northern neighborhood of Bavli.
Keizman is the husband of Strauss Group chairwoman Ofra Strauss. In late 2007, he bought the legendary Dekel Cinema for $6.8 million, and is building the Alma luxury residential project on the site. Current sales in the project built on the site are estimated at NIS 175 million. Keizman originally planned to build an assisted living facility on the site, but Efrati says that Oreha will adhere to the Urban Building Plan and sell 20% of the apartments to people over the age of 50. The asking price for apartments, which range in size from 70 to 90 square meters, is NIS 1.5-1.86 million.
Oreha will also redevelop the building at 25 Nahalat Benyamin Street, which is slated for preservation. The property will have 20 two and three-room apartments. The asking price for a two-room apartment is NIS 1.5 million, and the price for a three-room apartment is NIS 2 million.
The company will also redevelop a building at 52 Ben Yehuda Street, to have 20 apartments, which will sell for at least NIS 1.2 million. The third project is on Ben Zion Boulevard, which will have 17 apartments, with a four-room apartment selling for up to NIS 2.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 12, 2010
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