Real estate mogul Moti Zisser has taken a sharp knock to his real estate holdings. Europe Israel has written off NIS 25 million on the IBM office block in Tel Aviv, near the Tel Aviv Law Courts, that it bought three years ago for $50 million.
This write-off follows an earlier one of NIS 43 million for the building which the company reported in its 2003 financial statements.
Europe Israel invested some $20 million renovating the tower, which means the total of the write-off and the investment together brings the value of the building down by 21 percent. Together with other investment readjustments for the company, particularly through commercial tenders in Eastern Europe, Europe Israel has written off some NIS 68 million in 2004, of which NIS 44 million were in the third quarter alone.
Europe Israel couched its explanation for the write down in terms including "the continuing recession ... increasing competition in real estate ... the continuing weakness of the American dollar, in which currency rental properties are predominantly fixed ... the group companies have included in their financial statements for the period ... a write down of income-earning properties in Israel and overseas of a total NIS 67.9 million."
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