August 3, 2012
After eight years of investment, Yitzhak Tshuva completed a successful exit in the Plaza New York project, which yielded a cumulative profit of $ 920 million. This profit slightly moderated the failed investmentsDelek Real Estate Which owes NIS 2.15 billion to the bondholders, as well as the land in Las Vegas, in which Elad Group erased some $ 250 million in equity from the $ 300 million invested.
Today, Elad Group, Tshuva’s private real estate arm in the United States, managed by Udi Erez, sold its share in the hotel and commercial center to the Indian investment group Sahara Group at a company value of $ 575 million.
How to reach a profit of $ 920 million? Plaza New York was acquired by Elad Group in 2004 for $ 675 million from a group of investors led by Prince Al-Walid bin Talal. Afterward, Elad underwent extensive renovations in the hotel and transformed its share into luxury apartments. Accordingly, after the renovations, the total cost of purchasing Plaza totaled $ 1 billion and was divided into four parts: residential apartments (182), hotels, condos and commercial space.
Tshuva took advantage of the boom years in New York real estate and sold all the luxury apartments for a total of $ 1.5 billion and Elad Group achieved a profit of $ 500 million, and another $ 200 million to Elad Group for a sale back to Ben Talal for $ 200 million Elad Group will receive $ 400 million, and net of the debt will benefit from a net cash flow of $ 220 million, and the cash flow that will be received will make it easier for Elad Group to meet the commitments of more than $ 500 million for bond holders In Israel and will enable it to make new investments.