The Future Towers of Jerusalem by Suprin Weiss. Imaging: 3DIVISION
Significant news for the Sofrin Group, which exercised the option on the Future Towers project and is expected to post an impressive profit of approximately NIS 105 million.
The project is expected to be built on land located at 16 Beit Hadfus Street in Jerusalem. A project for commercial, employment, industrial, craft and public buildings can be established on the land, which will include about 85,000 square meters of gross employment and about 15,000 square meters of gross trade. As part of the project, two 26-story buildings will be erected, of which 24 are office floors and 2 are commercial floors, as well as a third 6-story office building. The total cost of the project is estimated at NIS 1.2 billion.
A company owned by the group (50%) traded part of the option it received to purchase employment space in the project, and for the sale it will receive a consideration in the amount of NIS 65 million during 2022, while costs will be estimated at NIS 25 million. Thus, the total profit from the option’s trading is estimated at NIS 40 million before tax, and Soprin’s share in this profit amounts to NIS 20 million (50%).
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Simultaneously with the exercise of the option, the Sofrin Group entered into an agreement to provide engineering management services to the purchasing group that will establish the project. The total consideration that Sofrin will receive for the services is estimated at NIS 200 million, and the expected profit for Sofrin from managing this project is estimated at NIS 85 million before tax. The income from the project will be spread over the period of its construction, which is estimated at about 5 years. Construction of the project is expected to begin in the first half of this year.
In addition, the company reported its financial results for the summary of 2021, which it ended with a 24% increase in revenues to NIS 77.9 million and an increase of 21.7% in net profit to NIS 13.4 million.
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Ilan Schwarzzorgen, CEO of Sofrin, notes: “The exercise of the option in the” Future Towers “project in the Keter complex is another transaction in which the company’s ability to locate unique projects in which there is significant improvement potential and generate current profits is reflected. In addition, the services agreement signed with the purchasing group in relation to the project, will ensure our company a stable cash flow throughout the project construction period, and expresses the company’s professional capabilities in the engineering fields. ”
He added that “at the same time, we reported over the weekend on the financial results for the summary of 2021, which we ended with growth in the volume of activity and profits. We continue to promote various projects and establish Soprin’s leading position in purchasing groups.” A major weight in the company’s development and formation was in the eyes of investors during the process of its issuance. ”
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