Globes - Israel's Business Arena

August 3, 2006

Israeli investors in NIS 1.9b German real estate deal;

Taurus Investment's German Targeted Retail Fund will buy 40 income-producing properties. Taurus's average return on investment is 20.31% a year

By: Guy Yamin

Sources inform ''Globes'' that German Targeted Retail Fund (GTRF), represented in Israel by Profimex (Israe), is about to buy 40 German income-producing properties for NIS 1.9 billion. GTRF has already bought half the properties, and has located and formulating contracts for another 30%. The fund is also examining a further eight properties. Profimex (Israel), run by general manager Elchanan Rosenheim, raised 10% of GTRF's NIS 500 million in capital from Israeli investors.

Taurus Investment Holdings LLC, a multinational corporation, founded GTRF a few months ago to buy retail properties in Germany with a focus on properties leased to supermarkets, which tend to be fully occupied under long-term contracts. Taurus Investment has 30 years experience in the German and US real estate markets. The company's average return on investment over the past decade has been 20.31% a year. Taurus will manages GTRF from its German offices.

Profimex raises in Israel 10-30% of equity on behalf of Taurus, and the two companies have jointly made NIS 3.8 billion in investments in ten properties. The Israeli investors in GTRF bought rights in two specialized Israeli partnerships, which invested in the fund through a private placement. The partnerships will manage the investors' money until GTRF needs financing, and will transfer to the investors distributions and interest payments received.

Profimex (Israel) said the internal rate of return (IRR) target for GTRF is at least 14%, and that GTRF's management fees would be 2.25% of capital per year. Taurus Investment is eligible for 25% of profits distributed, provided that the IRR is over 8%, and the rest will be distributed among investors.

Published by Globes [online], Israel business news - www.globes.co.il