Aaron Frenkel builds Bayside position

Aaron Frenkel

The Israeli businessman, who last year made a large profit on Aeronautics, is looking for a repeat performance with income producing real estate company Bayside.

Israeli businessman Aaron Frenkel has built a 8.6% stake in income real estate producing company Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1) worth about NIS 350 million. Frenkel has been buying shares in the company both on and outside the Tel Aviv Stock Exchange (TASE) and he reported his position after buying another 3.8% in Bayside yesterday for NIS 170 million, which makes him a party of interest in the company.

Frenkel made headlines last year when he built a 31.7% stake in drone developer Aeronautics for NIS 170 million. Within a year he had sold the stake when Rafael Advanced Defense Systems Ltd. and Avihai Stolero bought the company, making a NIS 90 million profit on his investment.

Bayside, which has a market cap of NIS 4.4 billion, specializes in income producing high tech parks and also has commercial, office and residential real estate interests. The company has no controlling shareholder and its largest shareholder is IDB Group's Property and Building Ltd. (TASE: PTBL), controlled by Eduardo Elsztain with a 29.9% stake. Last year Prpoerty & Building halved its stake in order to conform with the Law for Concentration of Assets.

The position built by Frenkel could potentially threaten Elsztain's influence in the company but in all likelihood Frenkel is seeking to make a profit on Bayside's low share price. Between the start of the start of the Covid-19 crisis and June 22 the company's share price fell 35% on fears that the pandemic would reduce the value of Bayside's assets. But since then the company's share price has jumped 26% and is now only 20% below its price at the start of 2020.

Published by Globes, Israel business news - en.globes.co.il - on July 30, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Aaron Frenkel
Aaron Frenkel
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