Israel Phoenix Assurance (TASE:PHOE1; PHOE5) has decided to quit the real estate market and sell half its holdings in its two properties. Israel Phoenix controlling shareholder Jacob Shachar told “Globes” today that the company was negotiating with several concerns to buy half of the properties.
Israel Phoenix chairman Doron Shorrer said the company had decided to expand its capital market activities and enter new ventures in this sector.
In his first interview about Israel Phoenix’s business activities, Shachar said, “We concluded that Israel Phoenix should focus on its core businesses, insurance and accompanying financial services. We have two real estate properties: a 28-storey office and residential building at 1 Rothschild Blvd. in Tel Aviv, and a plot zoned for 450 apartments on the Kibbbutz College for Education (Seminar HaKibbutzim) compound in the Ramat Aviv. We decided to sell half of our stakes, on the assumption that the buyer will manage the properties. We’re negotiating with several real estate companies.”
Shorrer told “Globes”, “Israel Phoenix will soon expand its capital market and insurance activities. We prefer entering the following sectors: loan guarantees; loan guarantees under the Sales (Housing) Law, 1973; and expanding credit to companies so they can obtain higher ratings from the rating companies.
“We plan to expand the activities of the Amit Pension Fund, which has an acturial balance. We founded a corporation that will found and operate provident funds. Uri Shmueli, an expert in the field, will head the corporation. Israel Phoenix also plans to enter the advanced training funds field.”
Shorrer added that Israel Phoenix does not plan to enter the mortgages sector. Clal Insurance (TASE:CLIS) is the largest insurance company in that sector.
Published by Globes [online] - www.globes.co.il - on July 1, 2003