Discount Bank will grant a $68 million loan for the residential and commercial tower being built by Erza and Eli Kahtan at the corner of Dizengoff and Frishman Streets, Tel Aviv. Investment in the project is estimated at $90-100 million. Discount Bank is granting the loan even though accountants at Unicorn issued a going concern qualification in its latest report on the company.
Unicorn and Grand Center, both controlled by Ezra and Eli Kahtan, began construction on the tower (which will have three commercial and 17 residential stories) a year ago. To date, most of the underground section of the building has been completed, and construction of the building skeleton has now started.
As of September 30, investment in the building has totaled NIS 104 million ($26 million). The companies recently announced that they have completed 14% of the project (referring to the basements and parking garages), and that the building will be finished in about a year.
In recent years, demand for commercial space on Dizengoff Street has declined in favor of malls. Dozens of empty stores stand along the entire street and the area of the tower, and property prices are falling.
The Kahtan brothers said in the past that they sold several luxury apartments in the tower, but did not disclose to whom or at what price.
Unicorn accountancy firm, Acct. Rahav-Reshef-Ben-Ami-Ovadia and co., issued a going concern qualification in its latest report on the company. The qualification stated that the company has a NIS 54 million deficit in equity, and there is a danger to its continued existence.
The deal with Discount Bank will provide Unicorn and Grand Center with the capital flow necessary to complete the tower, and may improve Unicorn’s liquidity and equity situation.
Published by Israel's Business Arena on 24 December 2000