Moldawsky and Attorney Efrati Buy Co-Op Store in Dizengoff Center for $3.2 Million

Simol Investments, owned by Boaz Moldawsky and Attorney Simi Efrati, acquired 2,000 square meters from the Co-Op Association on the lower level of Dizengoff Center in Tel Aviv. Simol will pay $3.2 million, or 1,600 dollars per square meter. The store is let to the Blue Square Co-op in a long-term contract with a yield of 9%. The Co-Op Association put the property on the market in accordance with an arrangement whereby it sells properties and shares the returns with its members. Eight bids were submitted in the tender, of which Simol’s was the highest. The Moldawsky brothers own 70% of Simol and Attorney Efrati owns 30%. Simi Efrat is the son of Attorney David Efrati, who has also entered the real estate market, including partnership in a residential building on Dizengoff Street in Tel Aviv.

The store is let to Blue Square Co-op at approximately 12 dollars per square meter per month, with a royalties track of 2.5% of turnover or more, whichever is higher. Minimum rental fees will be in the range of NIS 290,000 per year, linked to the index – yield of 9%. The contract is for nine years, with an option to extend thereafter. The deal is considered successful due to the relatively low purchase price and the slightly higher than normal yield in the current market.

The Moldawsky Brothers, part of the well-known family of diamond merchants, have let a 1,600 square meter store on Kurazin Street in Givatayim Industrial Zone to Co-Op for over 20 years. Rental fees are 3% of turnover, or a minimum dollar amount per square meter per month.

Moldawsky are about to increase their real estate activities, and will shortly commence construction of a tower including 100 luxury apartments at Jabotinsky St., cn. Sokolov, close to the Groner Towers in Ramat Gan. They have owned the plot for years, and estimate that the apartments will sell for reasonable prices given the upswing in the market.



March 22, 2004 Globes Real Estate