Hamburger Evron & Co.

 

The loan is intended to fund a luxury seafront project in Netanya. The loan will be drawn on the nostro account of Harel - and not from the money of members

Harel Insurance Company, controlled by businessman Yair Hamburger and managed by Michel Siboni and Shimon Elkabetz, will finance a luxury project on the seafront in Netanya to the sum of NIS 260 million. The loan will be drawn on the Harel nostro account (self-investments), and not from the funds of members holding long-term savings.

The project, called “Touch the Sea,” will be built on land purchased about two years ago by the developer Shlomo Berkovich of the Gurevich family. The Gurevich family is owner of the Menorah Insurance Company.

Harel’s financing, amounting to NIS 260 million, includes a credit line for construction, credit for issuing policies in accordance with the Sale Law, and a bank guarantee to the Gurevich family. For Harel, this is a real estate financing transaction, i.e., the money will be released according to the progress of the project. Harel will benefit from interest during the financing period. The transaction between the developer and the landowners is of a “proceeds combination” type, namely some of the proceeds arising from sales will go to the developer and some to the landowners.

The project is located at 21 Dankner Street, with first-line sea frontage, near the coastal cliff. The plot extends over an area of 1800 sq.m.

Harel, whose investments are managed by Amir Hessel, has in recent years made a strategic decision to turn into a leading player among the institutional entities in the field of real estate and infrastructure. Accordingly, it directly invested a few billion shekels in real estate in Israel and abroad, purchased shares in companies for hundreds of millions of shekels, and extended private loans in real estate with an aggregate total of several billion shekels.

Last year it also established a dedicated business sector for financing real estate projects. This sector is managed by Yaakov Nitsan, former Head of Real Estate Operations at Bank Otsar HaHayal.

The project, which will be built by the Shlomo Berkovich Team Company will include two connected buildings. Each floor will have two apartments, comprising 4-5 rooms, all of which overlook the sea. The four uppermost floors will contain mini-penthouses and penthouses extending over an entire floor, which includes the two buildings. Each apartment will have two parking spaces. The project will also include a swimming pool, gym, spa, residents’ club and a security guard desk in the lobby.

On the Harel side, the transaction was led by Roy Geva, Ron Cotten, the Harel Credit Department under the management of Itzik Tawil and Yaakov Nitsan. Harel was represented by Attorney Amir Shoham. The landowners were represented in the transaction by Attorneys Amir Chen, Izick Vatensteen and Chen Hershkovitz of law firm Fischer Behar Chen. The Berkovich Team Company was represented by Attorneys Amnon Sorek, Assaf Englard and Michal Mendelson of law firm Hamburger Evron & Co.