Connect with us

Hi, what are you looking for?

Jewish Business News

Real Estate

Teddy Sagi’s Brack-NV Buys Land in Dusseldorf for about €133 million

The land is designated for 1,300 residential units and 30,000 sq.m. for commercial use. Brack-NV expands as dominant residential developer in the city


The real estate company Brack-NV, controlled by Teddy Sagi, is signing a strategic deal to expand its activity in the development of residential real estate in West Germany. The company reported that it had signed an agreement for the acquisition of all the rights to the land of about 193 hectares in the city of Dusseldorf in return for about 133 million euros.

The Company estimates, based on the Urban Planning Scheme (Urban Building Plan) that in advanced approval procedures, it will be possible to develop about 1,300 housing units on the land, and another 30,000 square meters for commerce, offices, kindergartens and a school. The plan and the accompanying public infrastructure agreement are in very advanced stages of approval in the municipality of Düsseldorf, and therefore the Company expects that the Urban Planning Scheme will be published to the public by the end of 2018. This will enable the Company to obtain building permits and begin development of the project in 2019.

Please help us out :
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at
Thank you.

The acquisition is expected to be financed by a loan from a German bank amounting to 93 million euros, and the remainder from the company’s own resources. At the end of September, the bank had a cash balance of about 75 million euros (solo), as well as unutilized credit facilities in German banks amounting to 58 million euros. The closing of the transaction and transfer of the consideration was set for February 28, 2018.

According to Brack NV’s announcement, “the deal will contribute to making the company the dominant residential developer in the city of Düsseldorf in a way that will enable the company to optimize its economies of scale, both in terms of selling prices in the city and in terms of execution costs.

“The acquired property is the last large plot of land in the city, which is planning for the development of a large residential neighborhood, and expects that from 2020 there will be only three large projects (for the development of over 200 housing units) for residential purposes in the city of Düsseldorf. Of the inventory of housing units planned and not built in the city. The company will hold, together with the acquired property, an inventory of apartments for the development of approximately 2,400 housing units, of which 2,250 housing units in the city of Düsseldorf.

“The expansion of the Pipeline in the area of ​​residential initiation for the next ten years, while doubling the scope of development, from about 100-125 residential units a year to about 200-250 residential units a year after approval of the Urban Planning Scheme for the land division under discussion, in light of the development of several projects at the same time in different locations in the city without fear of cannibalization in selling prices,” Brack-NV reported.

In addition, the Company emphasized that the exposure to residential construction despite the acquisition will remain relatively low – only 17% of the balance sheet and about 10% of total consolidated loans.

The acquisition was made possible by a $200 million capital raised earlier this year by Brack NV.

In addition, the Company reduced leverage in recent years from 55% at the end of 2015 to 43% at the end of the third quarter of 2017 (the ratio between net debt and real estate value – LTV).

Ophir Rahamim, Co-CEO of Barrack NV: “We are pleased to report that after intensive efforts over the last few months and following the company’s capital raising at the beginning of the year,

We have been able to secure the acquisition of the new land division, which will double the inventory of apartments under development by the company and will ensure the pipeline in residential development for the next 10 years in an economically strong city like Dusseldorf.”





You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...


The Movie The Professional is what made Natalie Portman a Lolita.


After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Copyright © 2021 Jewish Business News