Polar Investments (TASE: PLR) subsidiary Polar Real Estate International Ltd., developer Ziel Feldman, and Canadel Development of Canada have set up a joint venture to develop residential properties in the US. The venture will have $50 million, which the partners plan to leverage into investments worth hundreds of millions of dollars.
The joint venture mainly plans to focus on residential projects, mainly in Manhattan and on Long Island. Feldman, who is active in real estate in the US, has promised the venture first rights to all his future projects.
Canadel, owned by Robert Rubinstein, who controls Canadian real estate company H&R Property Management Ltd., will own 25% of the joint venture, Polar Real Estate International 25%, and Feldman 50%.
The venture plans to buy two projects by mid-April 2005. One is a residential building with 110 apartments on West 44 St., near Times Square, slated for preservation. By the end of the year, the building will be thoroughly renovated and upgraded to a five-star residential building. The value of the project in sales prices is $95 million.
The second project is the construction of vacation homes in the Hamptons, Long Island, one of the most expensive areas in New York. In March, the venture bought lots for the vacation homes, intended for the very wealthiest households. 300 apartments in multi-storey buildings will be built in marinas in the area. Construction is scheduled to begin in mid-2006. The value of the project in sales prices is $105 million.
Polar Real Estate International and Feldman already jointly own the Herald Towers in Manhattan. Sales for apartments in the building are due to begin mid-year, and proceeds are estimated at $300 million.
Published by Globes [online], Israel business news - www.globes.co.il - on March 27, 2005