According to El-Ad Properties, owned by an Israeli billionaire Yitzhak Tshuva, they are in search for interested buyers for their South Beach project’s one-third venture, and also for their fifty percent share at Leonie Hill Road, the Futura apartment. El-Ad’s complete investment in the assets would reach up to an estimated value of $707 million.
Because of financial discrepancies and sky-high construction costs, a US$5 billion mega hotel and casino project in Las Vegas, US construction will be delayed. Instead of this year, the start of construction will be scheduled by 2010 instead. This is a project by an Israeli company in partnership with El-Ad.
“I think they are trying to sell their assets here because of their position in the US. A lot of their portfolio has exposure to the US economy and property market,” said a property industry observer.
El-Ad originally had high hopes to retreat with some profit in their hands, instead, they were already arranging on selling in lieu of the global crisis.
In cooperation with City Developments Ltd. (CDL) and also with Dubai World unit Istitmar, the group confirmed around September of last year that the cost of almost a hundred year leasehold South Beach site was $1.69 billion or $1,069 psf per plot ratio (psf ppr). The bid of the winning tender was estimated at around $500 million, lower compared to the utmost offer. The transaction was based on concept and price.