Miloumor Resido controlling shareholders Freddy Robinson and Yigal Zilka recently moved a large part of their business to Romania. They have balanced their estimated $40 million investment in that country with a corresponding reduction in real estate activity in Israel.
Robinson and Zilka have acquired control of Eurombank, a middle-sized private bank with 29 branches and 500 employees. Former Leumi Mortgage Bank CEO Benesh Avital has been appointed Eurombank chairman, and has moved to Romania, where he was born. He has close relations with the Elias family, one of the wealthiest in the Romania.
The two developers bought control of Eurombank from a receiver, after the bank experienced difficulties, and made it profitable. The bank currently conducts ordinary commercial business. Avital’s appointment probably indicates a plan to enter the mortgage market, which has recently become more developed in Romania.
Robinson and Zilka have also made various other investments in Romania. Among other things, they have acquired a marble quarry that supplies local contractors, and a television station. They have also bought a company that grows and markets seeds, and exports some of its produce to North Africa and Rhodes.
Resido is continuing its real estate business in Israel, but at a slower pace. Two months ago, the company inaugurated a 14,000-sq.m. shopping mall in Ashdod. The company also owns land for building thousands of apartments in Beer Ya’akov, and in other locations.
By transferring its business focus to Romania, Resido is joining a long list of private and public real estate firms, which have transferred a large part of their business overseas in recent year, due to the real estate crisis in Israel.
The list includes Africa-Israel Investments, Shikun Ovdim, the Mordechai Yona group, Azorim, BSR Engineering and Development, Ramet, Al-Rov, Yaacov Engel Construction Enterprises, the Jerusalem Economic Corporation, and Ravad. Ravad announced yesterday that its subsidiary was a 50% partner in the $15 million purchase of two commercial properties in the US.
Published by Globes [online] -l www.globes.co.il - on October 1, 2003