Sources re Danya Cebus construction in Har Homa and Maale Adumim 2007

-August 9, 2007 Ha’aretz article re Danya Cebus plans to complete construction in Har Homa and Maaleh Adumim


Hapoalim: Heftsiba is lying in its motion to halt legal steps
Complete Article:

Ha’aretz Daily, Nurit Roth and Shlomi Sheffer, August 9, 2007

The projects in question are in Har Homa, Jerusalem, which consists of 60 apartments, and the Nofei Sela project in Maaleh Adumim, which consists of 102 housing units. The apartments can be completed because of an agreement between the bank and the receiver on behalf of the Danya Cebus group, which is building both projects.



-August 9, 2007 Jerusalem Post article re Danya Cebus plans to complete construction in har Homa and Maale Adumim

Africa-Israel to complete building of two Heftsiba projects
Complete Article:

The Jerusalem Post, Matthew Krieger, August 9, 2007

Bank Hapoalim said Tuesday that Heftsiba customers who purchased apartments in Har Homa's "Meduragai Har Homa" and Ma'aleh Adumim's "Nofei Haselah," will be able to move in to their apartments following the completion of their construction, which will be carried out by the construction company Dania Sibus. The apartments are already at an advanced stage of construction, awaiting only to be connected to power and water lines. According to Hapoalim, Dania Sibus, a subsidiary of the holding company Africa-Israel, will do its utmost to complete the construction of the combined 162 residential units as quickly as possible.



-October 15, 2007 article in Jerusalem re court delay in Danya Cebus plans to complete construction in Har Homa and Maale Adumim

Court Blocks Hapoalim, Danya Cebus Deal 
Complete Article:

The Jerusalem Post, Matthew Kreiger, October 15, 2007

The Tel Aviv District Court has blocked, temporarily, the August agreement reached between Bank Hapoalim and Africa-Israel's construction unit Danya Cebus under which the bank agreed to pay some NIS 10 million for the completion of 162 Heftsiba residential units that had been under construction when Heftsiba went bankrupt in July, the bank said on Sunday. 

As soon as the agreement is approved by the court, the residential units, which are located in Ma'aleh Adumim and Har Homa, will be completed and the tenants will be permitted to take possession, the bank said, stipulating that tenants must complete all necessary paper work and payments before being handed the keys to the apartments.



-August 2, 2007 article in Globes on Heftsiba’s collapse and money Heftsiba owed to Danya Cebus for on-going projects

Heftsiba on verge of collapse;
Electra Real Estate has cancelled its acquisition deal. Heftsiba faces over NIS 1 billion in debt, as buyers overrun apartments and move in.

Globes [online] - Israel's Business Arena
August 2, 2007 Thursday
BYLINE: Ron Paz and Golan Fridenfeld


Amid deepening questions regarding Heftsiba Building Development & Investments Ltd.'s financial stability, and reports of hundreds of apartments being overrun by worried buyers, the real estate firm appears to be on the verge of collapse. Earlier today, Electra Ltd. (TASE: ELTR) announced that it has cancelled its acquisition of Heftsiba Building Development & Investments Ltd. and will try to recover both the NIS 30.1 million it paid for the company as well as $12.5 million in Heftsiba bonds in its possession. The company added that its maximum exposure to Heftsiba is NIS 170 million.

Pangaea Real Estate Ltd. (TASE:PNGD) also notified the TASE that it would not exercise its option to buy shares in Heftsiba Building.

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) subsidiary Danya Cebus Ltd. (TASE: DNYA) also said that it was owed NIS 30 million by Heftsiba for past and ongoing work for the company.

Faced with debts of about NIS 1.25 billion, Heftsiba is set to turn to the courts to ask for stay of proceedings against it. Its collapse would leave suppliers and apartment buyers without much of their money. According to estimates, Heftsiba has NIS 450 million of current debts, including checks to suppliers that were dated through 2010; NIS 300 million of bonds issued to institutional investors; up to NIS 400 million in bank loans; NIS 30 million owed to Danya Cebus Ltd. (TASE: DNYA); and NIS 10 million owed to Solel Boneh.

While almost every Israeli bank has loaned money to Heftsiba, it appears that the biggest lender is Israel Discount Bank (TASE: DSCT), which is allegedly owed NIS 120 million.

The company is owned by president Mordechai Yona and his son, Boaz Yona, who serves as CEO and chairman.

During the course of the day it was not possible to receive a response from Heftsiba.

Hundreds of families invaded apartments that the company built in Modi'in Ilit, a new haredi (ultra-orthodox) town, worried about Heftsiba's liquidity. Information obtained by "Globes" indicates that hundreds of families last night invaded the apartments that they had bought. At 6 am today, security guards, apparently hired by Heftsiba's receiver, arrived at the building site to ensure that no construction material would be stolen.

In the Ramat Heftsiba project in Beit Shemesh, dozens of apartment buyers, acting on rumors of Heftsiba's bankruptcy, took over their apartments which are still under construction. The police did not attempt any evacuations, saying they had not received a complaint from the company.
In addition, hundreds of company employees, who have not been paid for months, were notified that the company is bankrupt.

The Modi'in Ilit project, which is also known as Matityahu East (Kiryat Sefer), comprises 450 mostly three-room apartments in buildings of 5-6 floors each. The Modi'in Ilit Local Authority is located just east of the Green Line, near the city of Modi'in. The apartments have stood empty for 18 months, and may not legally be occupied following a High Court of Justice ruling in early 2006.
The Kiryat Sefer project was initiated by the Binyan Shalem NGO, which is affiliated with the Degel Hatorah party. Heftsiba Building was the chief contractor for the project. The apartment buyers, mostly poor and lower middle class haredi families paid $100,000 each for the apartments, into which they have not been able to move.

Published by Globes [online], Israel business news - - on August 2, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007



-August 23, 2007 article in Globes noting Danya Cebus plans to complete five projects started with Heftsiba

First ever quarterly loss for Danya Cebus;
Danya Cebus CEO: We're trying to minimize our exposure to Heftsiba. We're trying to complete our Heftsiba projects for their tenants.

Globes [online] - Israel's Business Arena
August 23, 2007 Thursday
BYLINE: Gil Shlomo and Roy Meltzer

Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) contracting subsidiary Danya Cebus Ltd. (TASE: DNYA) today published its financial report for the second quarter of 2007. The company posted its first ever quarterly loss, which it attributes to unpaid bills by Heftsiba Building Development & Investments Ltd., which collapsed in August.

Danya Cebus posted a pretax loss of NIS 28.4 million for Heftsiba projects. The result is a net loss of NIS 21.1 million for the second quarter, compared with a net profit of NIS 8.6 million for the corresponding quarter of 2006. Revenue totaled NIS 406.9 million for the second quarter, up 27% for the corresponding quarter.

The company's construction and infrastructure contracting orders backlog totaled NIS 3 billion at the end of June: NIS 1.6 billion in construction and NIS 1.4 billion in infrastructure contracting. Shareholders' equity totaled NIS 176.9 million at the end of June, NIS 50 million less than at the end of 2006, mostly because of a dividend distribution.

Danya Cebus CEO Ofer Kotler said, "The collapse of Heftsiba has created a business effect that must be analyzed and the lessons learnt. However, I don't think that it will affect the real estate industry as a whole, or have a material impact on Danya Cebus."

Kotler continued, "Heftsiba's collapse will mainly affect the regulators and the handling of interactions between developers, apartment buyers and the banks.
"We had considered in the past severing our ties with Heftsiba, but that would have been throwing out the baby with the bathwater. We've decided to try to minimize our exposure, and we'll reduce it to zero by year-end. Heftsiba's payment ethic was systematically poor, and we had problems collecting payment throughout my term as CEO."

"Globes": How do you see the future developments regarding Heftsiba?

Kotler: "The next stage will be to complete the projects now under construction, subject, of course, to approvals and all legal procedures. We're currently building five projects for Heftsiba. Our goal is to try to complete them so that the tenants can occupy their apartments. The fact that we placed guards on the apartments to prevent squatting was for the benefit of the tenants, because that's how we prevent vandalism."

What about the Israel Tax Authority investigation into your dealings with Heftsiba?

"As we notified the Tel Aviv Stock Exchange, we have a professional dispute with the VAT authorities regarding the timing of accounting expenses for the projects we built for Heftsiba in recent years. I have nothing more to add to this subject."

Published by Globes [online], Israel business news - - on August 23, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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