Tshuva targets China, India
Elad Group, which is managed by Yitzhak Tshuva's son Elad, has begun holding talks with Israeli and foreign investors, including Chinese, to establish a $100-$200 million fund for investing in China. The fund will be managed by Pini Cohen, who will handle the group's activities there.
Elad already has operations in the Far East, China and Singapore, and is building a total of 12,000 apartments and commercial space in multi-purpose complexes. Projected revenues from all the construction currently under way is estimated at $4 billion. Pini Cohen is a former CEO of Lev Leviev's Africa Israel Investments.
Alliance with Sigrun
In other Tshuva news, his real estate arm Delek Real Estate plans to invest hundreds of millions of dollars in a partnership with Indian giant Sigrun. Yesterday the Israeli company signed a memorandum of understanding to cooperate with Sigrun in building commercial and residential property.
Sigrun owns a virtual bank of property throughout India. Sources close to the group claim it owns 30,000 acres, of which 13,000 are zoned for construction. The agreement calls for Delek and Sigrun to set up a joint company that would take over the land. Delek will invest half the value of the land in the joint venture.
Sources near Sigrun believe that its total land reserves are worth more than a billion dollars, but not all would be part of the partnership. However, the sources believe Delek will be investing around half a billion dollars. The joint company will be established using a shell company in Israel or India.
Sigrun and Delek may also join forces in property ventures in China and Vietnam. At this stage Delek is coming into the deal on its lonesome, but sources say that it's negotiating with Israeli institutionals who might be brought in as financial investors.