Azorim, one of Israel’s largest real estate developers, is no longer in talks to buy a 25.5 percent stake in the parent company of Boaz Gilad’s Brookland Capital, the most prolific builder in Brooklyn.
Filings with the Tel Aviv Stock Exchange show Brookland Capital notified bondholders of the collapse in negotiations on Monday afternoon.
The news comes just a month after Gilad bought out his partner, Assaf Fitoussi, in Brookland Capital, giving Gilad 51 percent control of parent company Brookland Upreal. The other 49 percent is split between investors David Goldberger and Eyal Yagev.
Shortly after Fitoussi’s exit, Israeli publication Globes reported that Azorim was interested in taking a significant stake in Brookland Upreal, but according to Brookland’s Monday filing, “In light of the lack of ability to reach commercial agreements with the partners of [Brookland] Capital, Azorim and Capital decided to stop the negotiation.” According to the terms of the discussions, Azorim would have jointly controlled a 51 percent stake in Brookland Upreal had the deal gone through.
“We couldn’t come to terms with the business conditions to the deal,” Gilad told The Real Deal. “And we part as friends.”
Brookland Capital is the most prolific builder in Brooklyn over the past five years, especially by number of projects. Since 2012, it has begun development on or completed more than 50 buildings, specializing in small condominiums. The company brought in more than $66 million from condo revenue last year, according to bond filings.
Canadian billionaire Hershey Friedman became the majority shareholder of Azorim in 2011, after buying out developer Shaya Boymelgreen. In 2015, Azorim canceled the construction of a Trump-branded tower near Tel Aviv.
(To view properties owned by Brookland Capital, click here)