Canadian billionaire Alex Shnaider, former owner of the Maccabi Tel Aviv soccer team, agreed to invest NIS 39 million ($10 million) in Israeli real estate company Mishorim Development Group Ltd (TASE: MSHR), controlled by Israeli-Canadian developer Gil Blutrich.
Mishorim in turn owns Skyline International (TASE: SKLN) together with Ofer Nimrodi’s Israel Land Development Company (TASE: ILDC).
According to a filing with the Tel Aviv Stock Exchange, Mishorim is issuing 6.5 million shares to JE Finivest, a company controlled by Shnaider, representing 21% of Mishorim’s stock.
The deal reflects a post-money valuation for Mishorim of NIS 185 million ($48 million). The private placement at NIS 6 per share, represents a 36% premium over Mishorim’s pre-announcement stock price, said Globes. Mishorim will also grant Finivest options exercisable at NIS 9 per share for an additional investment of up to NIS 13 million. If fully exercised, these options will amount to 4.5% of Mishorim’s shares capital. Blutrich’s holdings after the private placement will be diluted to 53%, added Globes.
Alex Shnaider is a Russian-born Canadian entrepreneur and former commodities trader. He is co-founder with Ukrainian-born billionaire Eduard Shifrin, of the Midland Group, an international trading and investment holding company. Registered in Guernsey under the name Midland Resources Holding Ltd, the group owns a number of subsidiaries across the agriculture, manufacturing, real estate, shipping and steel industries. Primarily active in the Commonwealth of Independent States as well as Eastern Europe and the Far East, the Midland group has a presence in 34 countries worldwide.
“This is a significant milestone for Mishorim, both business-wise and financially. We are delighted with Alex Shnaider’s vote of confidence in the company and its future growth potential,” said Mishorim CEO Rami Shriki.
Mishorim Development is an Israel-based company, that together with its subsidiary, Skyline International, is engaged in the acquisition and development of real estate properties in Israel and Canada. Its property portfolio includes office buildings, shopping centers, resorts, and hotels. The company was founded by its chairman Gil Blutrich in 1989.
In Canada, Mishorim owns the Port McNicoll, a commercial project; Horseshoe Resort a ski and golf leisure site covering 1,875 acres and located 80 kilometers from Toronto; King Edward Hotel, and Skyline Tower.
In Israel, the Mishorim owns 13 income producing properties covering 26,000 square meters leased at an occupancy rate of 95%. It owns assets totaling 126,000 square meters; and approximately 10,000,000 square meters of land reserves for the development and improvement of 2,800 housing units.
Skyline International Development Inc. (TASE: SKLN) is a Canadian investment and management company founded in 1998. Skyline is a leading Toronto-based developer of hospitality properties and destination communities. From a relatively humble beginning, Skyline has grown to become a significant and recognized player in the Toronto, Quebec and central Canada real estate markets.
In late 2014 Skyline acquired Bear Valley Ski Resort in California, expanding its American asset base that includes an ownership of the Hyatt Regency Arcade hotel and shopping center in Cleveland, Ohio. In October 2015, Skyline acquired the Renaissance Hotel in Cleveland.
Skyline’s controlling shareholders are two public companies, Mishorim, and Ofer Nimrodi’s Israel Land Development Company (ILDC), both traded on the Tel-Aviv stock exchange. In early 2014, Skyline itself became a public company trading on the Tel Aviv Stock Exchange.
Ofer Nimrodi is an Israeli jurist, businessman, and former publisher born in Iran. His father, former intelligence officer Colonel Yaakov Nimrodi, served as the IDF Military Attaché and Israel Defense Ministry representative in Tehran, from 1956 until the fall of the Shah of Iran in 1979. The Nimrodi family owns a large group of companies and enterprises, primarily in real estate, media (Maariv), and energy sectors.