Peretz Negev Builder, controlled by Moshe Peretz, is about to purchase agricultural land tracts for residential construction pursuant to decision 727 of the Israel Lands Council. The company is negotiating with three kibbutzim and moshavim in central Israel for the purchase of land for the construction of 1,000 apartments (altogether). In consideration, the sellers will receive 25% - 28% of the apartments built on the plots.
At the same time, the company is negotiating the sale of 20% of its shares, in a private placement, to a US real estate investor, for $8 million, at a company value of $40 million.
Moshe Peretz, 90% owner of Peretz Negev Builder, is about to purchase his brother Aaron’s 10% stake in the company, from the Official Receiver. Aaron Peretz ran into financial difficulties and the Receiver seized his shares. Moshe Peretz has first right of refusal for the purchase of the shares, and intends to exercise it in order to attain full control in the company.
Peretz Negev Builder has recently been stepping up its purchase of lots. In the past three months, it purchased from Israel Lands Administration tracts for the construction of 242 apartments and 148 houses at $6.75 million, including development.
Published by Israel's Business Arena May 30, 1999