Sinai Insurance Holdings, controlled by Ben-Zion Weinstock, has decided to enter the real estate field. The company has recently been negotiating to buy offices in Tel Aviv and Petah Tikva for $8 million. Financial coverage from banks will provide most of the financing.
Sinai Insurance is negotiating with Jerusalem contractor and developer Reuven Ela to buy a 1,300-sq.m. office building at 57 Rothschild Blvd. Ela is asking $3.3 million, while it appears that Sinai Insurance is willing to pay $3 million or slightly less. The building is leased to Marlaz - Shore Area Construction Property and Holding (owned by the Yona family), lawyers John Geva and Amnon Zichroni, and others.
Sinai Insurance is also negotiating with Shmuel Rubanenko to buy a 2,200-sq.m. office building, including 50 parking spaces, on Sibim St. in Kiryat Matalon, Petah Tikva for $5 million..
The building, which is being completed right now, is leased to a high-tech company at $15 per sq.m. per month, or $400,000 per year. Sinai Insurance offered to buy the building for $4.4 million, which would give it a 9% return.
No response was available from Ela as of web posting. Rubanenko told "Globes", "I conducted negotiations with Sinai Insurance in the past, but they were broken off. I'm willing to sell the building even now, if I get a good price." Weinstock confirmed the details of the report.
Sinai Insurance is the fifth largest insurance agency in Israel.
Published by Israel's Business Arena on December 9, 2001