Press Coverage

According to the decisions by British Israel’s and Melisron’s boards of directors, Levy will also serve as the managing director of the merged company.

 

A management changeover at British Israel. Avi Levy, the managing director of Ofer Investments, will replace Amir Biram as managing director of British Israel, a position that Biram has held since British Israel’s founding. The Melisron Group, controlled by Ofer Investments, purchased control of British Israel a few months ago. Levy is expected to be the managing director of the company to be created after the merger of British and Melisron.

Levy has served as Ofer Investments’ managing director since 2002. In addition, he has served as a director of various subsidiaries owned by them. Over the last 30 years, he has filled various managerial positions in the Ofer Group, including Chief Finance Officer since 1980. Levy is a chartered accountant with a bachelor’s degree in Economics and Accounting from the University of Haifa and Business Administration studies.

Liora Ofer, chairman of Melisron’s board, said that “over the past 10 years in which Avi has served as the managing director of the Ofer Investments Group, the group has succeeded in producing great value for its shareholders and has improved its assets significantly. I believe that Levy’s professional abilities in the financial field, his understanding of business development and his great experience in the field of property, will allow him to improve the Group’s assets and he will also assist in the successful process of the anticipated merger between British Israel and Melisron”.

On entering his new position, Levy said: “We identified great potential in acquiring British Israel both in terms of business and finance. British Israel has a large and high-quality property portfolio in which we have identified great potential for continuing the development, improvement and creation of great value for the shareholders. For purposes of maximising shareholder value, it is my intention to continue the characteristic operations that have been in full swing at British Israel over recent years. I intend to continue to identify opportunities for acquisitions and the development of new and existing properties, yet all of this will be subject to a considered and responsible financial policy. It is my intention to execute the merger process in a controlled fashion while exercising discretion”.

British Israel, which is part of the Melisron Group, in turn controlled by Ofer Investments, is a property company that specialises in holding, managing and renting out income-producing properties, primarily shopping centers and offices. The company has more than 25 properties, primarily shopping centers, with a total area of more than 450,000 m² (the company’s share), which are situated in strategic locations throughout Israel.

 

British Israel has realised its option to purchase the balance of the rights to this property at a valuation of NIS 520 million. The shopping center produces an annual NOI cash flow of about NIS 38.5 million

 

British Israel, that holds 50% of the rights to the Lev Hadera Shopping Center, gave notice today (Sunday) that they have decided to realise an option they hold to purchase the balance of the rights to the property (50%) from their partners for about NIS 260 million according to a valuation of about NIS 520 million.

The acquisition of the balance of this property’s rights was made possible by a call option given to British Israel at the initial purchasing date which obligates the partners to sell them all of their rights to the shopping center and the management company. It should be mentioned that the value of this property according to British Israel’s financial statements as of the end of the first quarter of 2011, stands at about NIS 492 million.

The Lev Hadera Shopping Center provides letting accommodation amounting to about 19,000 m² and its occupancy rate is close to 99%. In addition, the shopping center has about 500 car parking spaces. As of March 31, 2011, the shopping center produced an annual NOI cash flow amounting to about NIS 38.5 million against which the property has an historical loan balance amounting to about NIS 236 million most of which is linked to the index with an interest rate of about 6%. This loan will be repaid within the scope of the deal. The finance to purchase the balance of the rights to the property, as well as repaying British’s share in the balance of the loan, will be found from British Israel’s independent sources.

Avi Levy, the managing director of Ofer Investments and director of British Israel said today: “The Lev Hadera Shopping Center is a high quality property located in a strategic position in the center of the city of Hadera. In recent years, this property has undergone expansion and comprehensive refurbishment which is expressed also in the strong operating results that this shopping center is showing. I estimate that this property still has potential to continue its improvement in the short to medium term. Within the scope of the acquisition transaction, the company decided to repay the entire loan on the property, a step that is expected to increase British Israel’s uncharged assets by about NIS 500 million. This will result in allowing us to maintain financial flexibility and also to positively contribute to the company’s financial operations”.
 

The property investment company ends the first quarter and with a 6% increase in NOI from identical properties. Maalot raised the ranking of the company’s debentures to A+. Lipman: “In the near future, the shopping centres sector will continue to perform better than the offices sector”.

 

The company, British Israel, is closing the first quarter of the year with a net profit to shareholders totalling about NIS 50 million compared with about NIS 88.5 million during the equivalent period last year. This drop derives from the increase in net financing expenses that amounted to about NIS 117 million compared with net financing expenses of about NIS 12 million during the equivalent period last year. This increase was affected by the increase in total debt (owing to the investment in developing properties and the acquisition of properties) and from a change in the [CPI] index that rose during the reporting period by about 0.9% compared with a drop of 1% during the equivalent period last year.

On the other hand, the company’s income during the first quarter of the year grew by about 29% to about NIS 258.8 million compared with about NIS 201.4 million during the equivalent period last year. The increase in income derived from an increase of about 6% to about NIS 192.3% million in the company’s income from lettings, management and maintenance of investment properties, which constitute the company’s core activities, with this increase deriving primarily from the improvement in the income from existing shopping centres and to a lesser degree as a result of the acquisition of new properties. Additionally, the company’s total income item also included an increase in the value of the property investment item totalling about NIS 65.5 million as compared with about NIS 18 million during the same period last year.

It should be mentioned that yesterday Maalot, the ranking company, raised the ranking of the company’s debentures issued by it from a ranking of A to A+ and also approved for the company a framework for the issue of debentures to a total of about NIS 600 million par value.

The NOI from identical properties, that shows the improvement in the company’s assets not including the assets acquired during this period, grew during the first quarter of the year by about 6% to about NIS 137 million compared to about NIS 129 million for the equivalent quarter of 2010. This increase derived, inter alia, from a real increase in rents, an increase in the Consumer Price Index to which the leases are linked, a change in the classification of Ikea Rishon-le-Zion to existing assets, and also as a result of the completion of the renovation and expansion works on the shopping centres in Petach Tikva, Ashdod, the HaSharon shopping centre in Netanya and the Maaleh Adumim shopping centre.

The company’s EBITDA during the first quarter of the year rose by about 4% to about NIS 128 million compared with about NIS 123 million during the equivalent period of 2010. This increase derived primarily from the increase in scope of the company’s activities as detailed above, and also from an improvement in its operating performance. It should be mentioned that the EBITDA during the first quarter of 2011 was negatively affected by the increase in the cost of professional services, which, according to the assessment of the company’s management, will drop in the coming quarters from a one-time increase in making provisions for bad debts, an increase in head office costs owing to an increase in the scope of the company’s activities and also from an increase in the scope of the donations made.

The company’s board of directors approved the distribution of a dividend amounting to about NIS 21 million (2.5 agorot/share) for the company’s shareholders. The ex date was set at May 31, 2011, and the actual distribution date was set for June 14, 2011.

Tal Ginsburg, the company’s VP for Finance, said today: “We are happy to report today on the continued growth trend in the scope of the company’s activities with the background of transferring control of the company. During the first quarter we continued to demonstrate an improvement in the company’s core activities, lettings, management and maintenance of properties, alongside a strong cash flow. We are certain that the company’s high degree of liquidity, together with the continued development of existing properties and our ability to exploit opportunities in the markets, will assist the company continue to maintain its growth trends in the future also and to continue to strengthen its position as a leader in the shopping centres market in Israel.”

Shai Lipman, the real state analyst with IBI, says that in total, these are good results. “Of course these results were clouded by the high financing costs owing to an increase in the index which are expected also in the second quarter, but it should be noted that recently, British replaced a large proportion of its old debt with significantly lower interest rates than those it had until today. This trend, alongside an increase in the Maalot ranking for the company’s debt to A+ and a change in ownership into hands with a stronger financial backing, will in the future reduce the company’s financing costs. In our opinion, in the near future, the shopping centres sector will continue to perform better than the offices sector.”

 

“Maalot estimates that British will continue to show an increase in NOI from existing properties, primarily owing to the linkage of the leases to inflation and also owing to the improvement of some of its properties”.

 

Maalot Ltd. gave notice about the increase in the credit ranking of the company British Israel that is managed by an Amir Biram, from A to A+ with a forecast of stability. Concomitantly yesterday, Maalot gave an identical ranking to the issue of future debentures to a total of up to about NIS 600 million par value. In its considerations on raising the ranking, Maalot indicates, inter alia, that: “In April 2011, Melisron completed the acquisition of control of British Israel. Upon the completion of the transaction, British Israel will be part of the Melisron Group which is one of the two leading groups in the field of shopping centres in Israel”.

“British Israel’s financial profile will continue to improve in the short term, as a result of the use of proceeds from the realization of assets for the repayment of fiscal debt alongside continued growth in NOI, both from existing properties and from the completion of construction and the development of others”.

“Maalot estimates that British will continue to demonstrate growth in NOI from existing properties primarily owing to the linkage of leases to inflation and also because of the improvement of some of its properties. Furthermore, Maalot estimates that the completion of the development of existing properties and new ones in the coming years is expected to increase NOI to a level of about NIS 650 million (without taking into account the expected sale of properties).”

“From the financial aspect, Maalot can see stability in the short term and even an improvement in the medium term. The synergy with Melisron is expected to enhance economies of scale and British Israel’s business positioning. Also, after the expected sale of the Grand Kenyon in Haifa which is one of its strongest assets, the property portfolio will remain strong and with quality characteristics that will remain over time”.

Amir Biram, the managing director of British Israel: “We are happy about the increase in British Israel’s debt ranking by the ranking company Maalot from a level of (A) to (A+). In recent years, the company has shown constant improvement in its financial performance which is expressed, inter alia, by a reduction in its level of gearing, an improvement in the scope and quality of the operating cash flows being created by it alongside a strengthening in its financial positioning. The improvement in the company’s financial profile positively stands out owing to the significant growth in its activities over recent years (through an improvement and development of owned property as well as the acquisition of others) and with the regular participation of the shareholders in current profits. I believe that projects under construction and being improved, on which we have been working in recent years, most of which are expected to produce significant cash flows in the short to medium term, will bring about a continued good growth in the company’s activities alongside the continued improvement in the company’s financial profile and its ability to service its debt.”
 

Avi Levy, the managing director of Ofer Investments: “This morning we completed the acquisition of British Israel. This involves an acquisition that puts us in a different place. Amir Biram has managed the company perfectly and we are proud to have purchased it”.

“A year ago, Yuval Ben-Zeev wrote that Melisron should be in the investment portfolio of every company. Since then, Shai Lipman has also published a recommendation. Gentlemen, we are not an oil exploration company nor are we Google. This is a property investment company in Israel. Over the last decade, Melisron has recorded an average increase of 32% annually. The dividend policy represents a return of 6% on the company’s present market value”.

Levy added, “Melisron has assets worth NIS 13 billion and an annual NOI of NIS 900 million. This positions the company as one of the leading companies in Israel. We purchased British because it has quality properties around Israel. The joint synergy will bring about cost savings. We have 26 sites around Israel from Simona to Dimona”.

“The Kiryon shopping mall is valued at NIS 1.9 billion. We had a slight drop in NOI but this was a drop for purposes of an increase owing to a turnover of tenants”.

“The Ramat Aviv Shopping Center is a purchase that has turned out to be very successful. We bought it at a net cost of NIS 1.1 billion. This is one of Israel’s leading shopping centers with a feeling of being abroad. This shopping center contains companies that cannot be found anywhere else”.

“We were forced to sell the Grand Kenyon in light of the Antitrust Authority requirements. I very much hope that we will succeed in overturning this decision. The location of the Grand Kenyon makes it most attractive and therefore we do not want to part with it”.

“We are partners with Ikea in properties in both Netanya and in Rishon Lezion. The Ikea store in Netanya burned down, but the agreement reached by Amir Biram is likely to lead to British not being caused any harm as a result of the fire”.

“The Beersheva Mall will yield us an annual return of 10% on our investment. The Azorim Park in Petach Tikva is a gorgeous park. We have land reserves to increase the campus’ size. It offers a very pleasant atmosphere of being abroad”.

“Our target, following the acquisition of British, is to increase NOI to NIS 800 million per annum”.
 

Those, among others, entering the mall are H&M, Top Shop, Bershka, Pull and Bear, etc. The shopping center’s managing director, Danny Turkenitz: “This step will turn the shopping center into an icon that will make the public come even from the Sharon region towns and North Tel Aviv”.

 

The Avnat Shopping Center in Petach Tikva today (Tuesday) dedicated a new floor for brand names with an investment of NIS 120 million. This floor provides 7,000 sq.m. of commercial space housing 42 businesses, including 39 businesses that are new to this mall.

With the opening of the new floor, the total commercial space in the mall will amount to 37,000 sq.m. with 184 businesses.

Among the new businesses that have come in are the chains: H&M, Top Shop, Bershka, Pull and Bear, Aldo, HDL, Imaginarium, Payless, Adidas, Amaro, 7Camicie (its first shop in Israel), Billabong, Segal Dekel, Ronen Chen, Timberland, Replay and Greg Café. The American Eagle brand is expected to enter the mall at the start of 2012.

According to Danny Turkenitz, the mall’s managing director, “We have concentrated very strong mass market brands on the upper floor in order to generate a large amount of traffic there. We have become the largest shopping mall in the area and the shopping center with the largest concentration of leading brand names in Israel. On the one hand, the mall gives you a feeling of being abroad, while on the other it offers a family atmosphere. This is such a significant move, and I am certain that it will turn the shopping center into an icon that will draw in the public even from the Sharon region cities and north Tel Aviv”.

British Israel ended 2010 with a net profit of about NIS 407 million, a jump of about 46% compared with 2009; it will distribute a dividend of about NIS 20 million in respect of the fourth quarter results and about NIS 83 million for 2010

 

Amir Biram, the managing director of British Israel, the property company, signed yesterday, after seven years in the job, apparently for the last time, the company’s 2010 financial statements, which point to the improvement of British’s assets and to an increase in the scope of its activities.

Biram is considered one of those responsible for the nice exit that the controlling owners of British Israel, Leo Noe and Puyo Zabludovic as well as Biram himself, are supposed to enjoy on the assumption that the meeting of the company’s shareholders on March 30 will approve the transaction for the sale of the Grand Kenyon in Haifa, following the sale of control to Melisron for about NIS 1.7 billion.

British Israel ended 2010 with a net profit (attributable to the shareholders) of about NIS 487 million, a jump of some 46% compared with 2009. A significant proportion of the increase in profit derived from the income from asset revaluations that British recorded during the previous quarter totaling NIS 306 million primarily owing to a drop in the capitalisation rates of the assets and an increase in anticipated rents alongside a reevaluation of property under construction.

As a result of the revaluations, net profit jumped during the fourth quarter to about NIS 238 million compared with about NIS 29 million during the equivalent quarter in 2009. British will distribute a dividend of about NIS 23 million in respect of the fourth quarter results. The total dividends paid by the company for 2010 are about NIS 83 million. British’s income in 2010 from lettings, management and maintenance of investment properties, the company’s core activities, amounted to a total of about NIS 748 million, an increase of about 10% compared with 2009.

The company’s total income in 2010, including the increase in value of its investment property, climbed by 82% to NIS 1.3 billion (about 790 million in 2009). The income during the fourth quarter jumped to about NIS 500 million compared with about NIS 153.5 million for the equivalent quarter in 2009.

British beat its own forecast for 2010 for net operating income (NOI) totaling NIS 520 million that in practice amounted to NIS 533 million - a growth of 16% compared with 2009. In the most recent forecast published by British in 2010, the company expected that the NOI for 2011-2012 will be at an annual rate of NIS 580 million. Total NOI in the fourth quarter amounted to about NIS 136 million, an increase of about 11.5% compared with the equivalent quarter in 2009.

British’s EBITDA in 2010 grew by about 16% to about NIS 493 million compared with about NIS 426 million in 2009. This increase derived primarily from a growth in the scope of activities, following the acquisition of the assets of Irus HaGilboa, and also as a result of an improvement in the operational performance of the assets owned by it and from their improvement.

The total FFO, the real flow from current activities created by British attributable to shareholders, was about NIS 195 million in 2010 - an increase of about 30% compared with 2009. NOI from existing assets, which presents the improvement in the company’s assets - canceling out the assets acquired during this period - grew during the fourth quarter by about 4.6% to about NIS 127.3 million where the company also recorded an improvement in NOI from identical assets compared with the equivalent period last year.

As of the end of 2010, the company’s tills held cash, cash value, short term investments and short term loans and deposits totaling about NIS 897.3 million. Despite British’s relatively high leverage, the company’s financial strength continued to improve in 2010.

“A worthwhile holding”

“The financial statements clarify the quality of British’s assets as expressed by the increase in their values”, Psagot people mentioned yesterday. “The emphasis in this share is of course the deal under execution with Melisron. As we previously indicated, either with or without the transaction, holding British is worthwhile, and we maintain our buying recommendation at a target price of NIS 14.3 (about 10% higher than its Stock Exchange price - MR)”.

Even the analyst, Shai Lipman from IBI could hardly restrain his praise: “In one sentence: Melisron did a wonderful deal - the British financial statements explain why”.

Biram’s salary in 2010 was NIS 2.2 million.

 

1. The deal

Less than 18 months after purchasing, in a huge deal, the Ramat Aviv and the Savyonim shopping centres from Lev Leviev’s Africa Israel and turning from an anonymous player to a key figure in the shopping centres market in Israel - yesterday Melisron took a giant step towards becoming Israel’s largest shopping centres company: Melisron reported that it is in engaged in contacts, through its parent company Ofer Investments, for acquiring about 71% control of the property investment company, British Israel, for about NIS 1.7 billion. This is one of the largest investment property transactions in Israel in recent years.

Should the deal go through, the two groups will control the shopping centres market in Israel: Melisron, that will be holding shopping centres worth about NIS 11 billion; and Azrieli that owns shopping centres valued at about NIS 6.5 billion. Melisron is owned by Ofer Investments that in turn is owned by Yuli, Eyal and Liora Ofer.

Today, British Israel holds about 20 shopping centres as well as several business parks and office buildings around Israel. Melisron holds about four shopping centres in Israel, so that the merged group will overtake the Azrieli Group in terms of property value and space, making it the largest investment property group in Israel. The Melisron-British Israel Group will hold income producing properties amounting to about 770,000 sq.m. (in the consolidated balance sheet). The Azrieli Group holds about 233,000 sq.m. of commercial area and about 341,000 sq.m. of offices, of which about 98,000 sq.m. are located abroad.

Liora Ofer, the chairman of Melisron, said yesterday: “The acquisition of British Israel by Melisron and Ofer Investments constitutes a most important strategic purchase for the companies. British Israel has a spread and distribution of income producing properties and shopping centres throughout Israel. British’s holdings in high-tech industrial parks and offices expand the range of their holdings. British has projects under construction that will produce additional income in the near future”.

 

2. Exit Noe and Biram

British Israel, currently managed by Amir Biram, is owned today by Leo Noe (55.7%), Favio Zabladovic (15.65%) and the Migdal Group (5.7%).

In 2004, Noe bought control of Azorim Properties (which then changed its name to British-Israel) from IDB for about NIS 360 million, and since then has made additional investments in the company as well as introduced partners, primarily through share exchange transactions with Zabladovic, the British Jewish billionaire, and the Bronfman family (the controlling owner of the Israel Discount Bank). According to estimates, Noe has returned all of his investment in British such that the entire cash flow, amounting to about NIS 1.2 billion, will be considered by him as pre-tax profit, whereas the net profit that he expects to record is estimated at NIS 1 billion. Someone else who is expected to rake in a huge profit from the transaction is Amir Biram, British’s CEO, who holds about 6% of the company, UK ONE, which holds British, so he is expected to receive about NIS 80 million (before tax) for his shares. According to estimates, Biram is expected to continue to lead the company initially after completion of the transaction.

 

3. Strategies

The retail market, as we have said, is expected to wake up to a new reality in which Israel’s shopping centres have only two owners - Azrieli and Melisron. The Azrieli Mall in Tel Aviv is controlled by businessman and architect David Azrieli, who was the first to import the concept of the modern mall about 30 years ago. In recent years, Azrieli has built mall after mall in central locations in Israel’s major cities, such as the Ayalon Mall in Ramat Gan, the Malha Mall in Jerusalem, the Negev Mall in Beersheba and the Azrieli Mall in Tel Aviv. Azrieli also purchased malls like the Sharonim in Hod Hasharon, two outlets in Herzliya and Or Yehuda and recently also the Haifa Mall owned by Delek Real Estate. But his strategy has always remained the same: the development and construction of new malls. In this way, two years ago, he opened the Modiin Mall and plans to open the Northern Mall in Kiryat Ata and another mall in Rishon Lezion.

 

Melisron operated a similar strategy with two shopping malls that are among the most successful and largest in Israel: the Kiryon in Kiryat Bialik and the Renanim Mall in Ra'anana. Despite holding two successful malls, Melisron neither increased the number of assets owned nor became a significant player in the market.

British Israel’s Israel Shopping Centres is completely different. British Israel began its activities in Israel in 2004 - great timing in a market full of opportunities and properties at low prices. Israel only had one major shopping malls group, Azrieli, with all the other malls scattered among many companies in private hands.

British Israel’s aim, to be the country's leading network of malls and shopping centres, dictated a massive acquisition of commercial centres. There was no time to buy land, to design and build a large mass of commercial centres, so they began a shopping spree that started with the purchase of Azorim Properties from Ganden Properties, controlled by Nochi Dankner, for NIS 360 million. Today they hold an impressive portfolio of some 20 commercial properties and office buildings.

The company could not penetrate the central region and mainly focused on the second circle with malls like the Grand Kenyon in Petah Tikva, the HaSharon Mall in Netanya and the Rehovot Mall. Their other properties are smaller in more inferior locations. Despite the large number of properties, they could not muster real competition against Azrieli.

When the opportunities ended, British began to develop new properties like in Ashdod and a new project in Beersheva in partnership with Eli Lahav as well as the other deals they are still doing.

While Azrieli builds a lot and buys little and British Israel buys a lot and also develops, Melisron remained without a clear strategy or vision. It didn’t build or buy - and lags far behind with its assets portfolio consisting mainly of two major assets - the Kiryon Mall in Kiryat Bialik and the Renanim Mall in Ra'anana. Although only two malls, both are the largest in the country (about 40,000 sq.m. for rent) and of high quality. The Kiryon Mall is considered one of Israel’s most successful malls.

Half a year ago, with the appointment of Liora Ofer as chairman of Ofer Brothers Properties, came the revolution. Ofer had its first opportunity during the economic crisis, which made it difficult to Africa Israel to fund its debentures, and thus forced it to part from the Ramat Aviv Mall.

Among the natural candidates to buy the mall were both British Israel and Azrieli. Contacts with these two groups led nowhere and then Melisron surprised everyone by acquiring Africa Israel’s share (73%) at a value of NIS 1.5 billion.

The market said that Ofer had agreed to pay what the other two had refused to do in order to hold one of the most expensive, prestigious and successful shopping malls and to finally gain a foothold in central Israel. This acquisition sent a clear message to the market: "We are serious". Regrettably for Ofer, she woke up too late and with bad timing: when there is no supply of attractive shopping centres for sale and the mall owners are rich and liquid players, just like her, people are looking to buy.

 

 

4. Shortcut to the top

If there are no properties available, Ofer Investments could make its opportunity by purchasing British Israel with its entire portfolio. Over the past 18 months, Noe has been reducing his holdings in the Company, and if this deal goes through, he will make his grand exit and sell the company at a profit.

Ofer, for her part, will buy her NIS 1.7 billion shortcut ticket to the top. In one day, she will do what it took Azrieli 30 years and Noe 6 years: to control one of the major malls groups in Israel and become one of the country's largest real estate companies.

Melisron's portfolio has much quality and prestige: the Ramat Aviv Mall, the Renanim and the Kiryon. British Israel's portfolio will add quantity to this: more than 20 properties across the country.

The transaction price is 30% higher than British’ stock market price

To ease the financial burden of financing the transaction, Melisron will acquire 60% of the British Israel shares being sold (about 42.6%), and Ofer Investments will acquire approximately 40% (approximately 29% from British). Melisron is expected to invest about a billion shekels in British shares, with the remainder to be invested by Ofer Investments. The shares will be bought at NIS 14.5 per share - a price about 30% higher than the price of British at the start of trading yesterday. This price gives British a value of NIS 2.4 billion.

In addition, the deal is being done at an equity multiplier of 1.3 (including the control premium). British shares rose yesterday by 3.9%, so that the premium on its market price dropped to about 21%. Melisron’s shares remained steady. As of the end of June 2010, Melisron had cash totalling NIS 90 million, so that most of the funding will be through bank loans and the issue of debentures, in exchange for which assets will be charged. The ratio between Melisron’s financial debt and its asset value was approximately 40% and now it will grow to 55-57%.

"When you make a nice return on investment in such a short period - sometimes it's better to cash it in"

Alongside Leo Noe’s expected grand exit from British Israel, Pujo Zabladovic is also succeeding to cash in impressively at British. Tamares Real Estate, controlled by him, joined Noe in late 2008 in the controlling interest in British. This was after two Tamares' yielding properties had been merged into British for about NIS 170 million in cash and an allocation of 25 million British shares that were being traded then at a price of NIS 4.3 per share.

Now he is selling most of his holding, at NIS 14.5 per share, for approx. NIS 370 million (not including dividends) - almost 4 times his investment of a year and a half ago - a profit of about NIS 300 million and will be left with his holding of about 0.7% in British.

"We received a good offer and after much deliberation we decided to realise most of our holdings and turn the money we receive towards new deals," Yodfat Harel, CEO of Tamares Israel told The Marker yesterday.

Does the fact that you are now selling your holding in British show that there is no future in yielding properties in the coming years?

Harel: "No, we are looking for new yielding properties as well, but when you make such a good return on investment in such a short period of time, then sometimes it's better to cash in and move on."

Have you not squeezed the lemon till the pips squeak? Even to the point where a buyer has no opportunity to generate further value?

"I don’t think so. British under Amir Biram did an amazing job, but this company still has somewhere to go."