A joint venture will buy land on Tel Aviv's shorefront.
Inventech Central Hotels Ltd. (TASE: IVTC), controlled by Yuli Ofer and Nimrod Rinat through Premium (PIH) Holdings Ltd. (TASE: PIH) is launching operations in Israel. The company will buy, through a special project company in which it owns a 50% stake, land on Herbert Samuel Street on Tel Aviv's shorefront, on which it plans to build a luxury hotel and residential high-rise. The price of the land is NIS 56 million.
The Inventech subsidiary has signed an option to buy the land. Inventech will provide a NIS 5 million loan for the initial payment. If the provisional conditions for exercising some of the options for the lots are met during the 60-day loan period, and the negotiations to buy the rights to the remaining lots are completed, the loan will be converted into shares in the land, and the company will provide an additional owner's loan for the project, amounting to half of its costs.
Premium currently operates in Central and Eastern Europe in real estate through Central European Estates NV (CEE) (TASE:CNERO.B1) and in hotels, through Inventech.
Published by Globes [online], Israel business news - www.globes-online.com - on April 3, 2011
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