Barely a year after Adi Keizman sold his holdings in failing real estate company Asim Investments, he is setting up another real estate enterprise, Oreha, in partnership with Ran Efrati.
The new company, which says it will initiate unique real estate projects in the Tel Aviv area and in high-demand areas throughout the country, is launching four projects that until now have been owned by the two men separately. The projects are expected to generate NIS 380 million in sales revenues, and will be marketed over the coming months, with construction scheduled for 2011.
Over the past year Keizman, who is married to Strauss Group Chairperson Ofra Strauss, led a number of real estate deals through his privately owned ADO Holdings. Keizman set up a luxury apartment purchasing group in Petah Tikva and has previously organized purchasing groups in Kfar Sava and Tel Aviv. Over the past year ADO's revenues have increased 17% from operations in Berlin, where the company is involved in upgrading properties and managing income-yielding properties for Germans living elsewhere.
Less than a year ago Keizman sold his 5.4% holding in Asim, whose real estate operations were mainly in Eastern Europe, for just NIS 13 million, incurring a loss of NIS 28.6 million on his stake in the company from June 2008, for which he paid Avihai Stolero NIS 41.6 million.
ADO Group, the mother company of ADO Holdings, owns 98 income-yielding residential and commercial properties in Berlin, has also recorded NIS 110 million in cumulative losses in the past two years.
Efrati has been involved in luxury residential real estate in the past few years, including in projects on Tel Aviv's Hayarkon Street, Rothschild Boulevard, the Neveh Tzedek neighborhood and Nahalat Binyamin. Oreha plans to build 100 luxury apartments and 2,000 square meters of commercial space in the Alma project, in Tel Aviv's Bavli quarter, on the current site of the Bavli commercial center and the Dekel movie theater. The apartments, which will have 2-3 rooms, will start at NIS 1.5 million. There will also be penthouses, starting at NIS 5 million.
Another Oreha project is Beit Chernov, at 25 Nahalat Binyamin St., one of Tel Aviv's oldest and most important buildings slated for preservation. The six-story building will have 20 apartments with 2-4 rooms, and one penthouse. Prices there will range from NIS 1.5 million to NIS 9 million.
Oreha's third project is a building near the beach, at 52 Ben Yehuda St., which also has 20 apartments. These 2-3 room units will be slightly less expensive, starting at NIS 1.2 million. Lastly, Oreha is building 17 luxury 2-4 room apartments and rooftop apartments on Ben Zion Boulevard, near the Habima theater. Prices there range from NIS 1.5 million to NIS 2.5 million.
"The idea behind the founding of Oreha," says Keizman, "was to set up a leading real estate company in Israel by forging a connection with a player in the local market, with a proven record of big deals and a deep understanding of this sector."
"I am a big believer in Tel Aviv and its real estate potential," says Efrati. "I think there are many parts of the city whose value has not yet peaked, and which hold many opportunities, such that prices will continue to rise."
Efrati noted that Oreha is in the advanced stages of acquiring land in Tel Aviv, Ramat Gan and Yehud for constructing hundreds of apartments, and hopes to start marketing them by the end of 2010.
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