One of Nochi Dankner's silent partners in the control of Ganden, the company through which he rules the IDB group, is the Schimmel family. The family has about a 10% stake in Ganden, which in turn controls IDB Holdings.
Since these shares belong to the part of the group of controlling shareholders, brothers Jacob (Jacky) and Marc Schimmel sit on the boards of the IDB Holdings group's publicly-traded companies.
Marc is on the boards of Property and Building Corporation and Koor Industries, and Jacky is a director of IDB Holdings and IDB Development.
The announcement earlier this month by Koor and Property and Building that they were acquiring the New York headquarters of the international banking corporation HSBC also contained fine print regarding the Schimmel family.
Koor is to enter an agreement with a company belonging to Jack Schimmel. The company will be entitled to offer real estate deals and various services to Koor. In exchange for its brokering and other services, Koor will pay it fees.
By the way, Koor is paying HSBC $330 million for the headquarters, which is located in Manhattan, on the corner of 425 Fifth Avenue and 1 West 39th Street. The bank will remain the main tenant in the building for 10 years with an option to extend its lease.
Now, if the agreement wins approval from shareholders of Koor and Property and Building, the Schimmels will receive a retroactive fee for the purchase of HSBC's New York headquarters.
According to the announcement to the Tel Aviv Stock Exchange, "Koor and Property and Building will each assume half of the expenditures, estimated at about $18 million, including primarily brokerage fees and payments to consultants."
The IDB group won't say how much of that will go to the Schimmels.
Sources close to IDB say the $18 million will be split up among all of the brokers and consultants involved in the HSBC building deal, including accountants and lawyers.
The bottom line is that Dankner's partners in the control of Ganden - and indirectly of IDB group companies Koor and Property and Building Corporation - will be getting millions of dollars out of the deal. Assuming the shareholders give the go-ahead, the Schimmels also stands to reap handsome rewards in the future for brokering other deals involving Koor and Property and Building.
This isn't Dankner's first merry-go-round with the Schimmels. A few months ago Property and Building announced that it was going in with Jacky Schimmel's Rock Real Estate firm, the same company that brokered the HSBC deal with the intention of partnering in hundreds of millions of shekels in real estate investments around the world.
In 2008 Property and Building joined up with Electra to acquire land owned by the Schimmels and family partners in Ukraine for about $33 million. That deal fell through. One year earlier Property and Building signed a $41 million deal to expand its holdings in three residential and commercial development projects in Las Vegas. Two months after disclosure of the investment, Property and Building reported that the Schimmels and their partners had an interest in the same project. The Schimmels are also 14% partners with Dankner in Ganden Tourism, which owns Israir Airlines.
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