Yakir Gabay: The Israeli Cypriot businessman investing billions on the island

Israeli-born business tycoon, Yakir Gabay, who has Cypriot citizenship, is investing billions on the island as founder, deputy chairman, and major shareholder of Aroundtown SA, a global real estate giant with a $30 billion real estate portfolio.

The company is in the process of acquiring an equity stake in Kition Ocean Holdings, something which will mark Aroundtown SA’s into the integrated development of the port and marina of Larnaca.

Yakir Gabay is also behind the massive €856 million investment in Ayia Phyla, which is in public consultation before the Department of the Environment, and which - among others - includes the creation of a private school, a medical institution and research and innovation centre.

Yakir Gabay is on Forbes magazine's list of self-made real estate entrepreneurs, with an estimated net worth of $3.4 billion. He owns a 40% stake in Grand City Properties, which owns around 65,000 apartments in Germany and London and is a subsidiary of Aroundtown SA.

Aroundtown SA’s involvement in the marina and port of Larnaca

As recently announced by the Commission for the Protection of Competition (CPC), Aroundtown SA is acquiring a shareholding in the Kition Ocean Holdings consortium, which has undertaken and is implementing the significant project of developing the marina and port of Larnaca.

Aroundtown SA is a real estate company duly registered under the laws of Luxembourg and listed on the Frankfurt Stock Exchange.

It was founded in 2004 by Yakir Gabay, who currently owns 15% of the shares and serves as deputy chairman of the advisory board.

The company's operations are focused on quality, high-yielding, income-generating properties, and today it has a real estate portfolio of $30 billion.

Selecting value-added properties in central locations, Aroundtown SA's investments are mainly located in central European city locations, with the majority being in Germany, the Netherlands and London.

The type of properties he chooses are typically commercial and residential, which benefit from strong fundamentals and growth prospects.

Usually, Aroundtown SA's investments are made through its subsidiary, Grand City Properties S.A., in which Yakir Gabay owns a 40% stake. Grand City Properties S.A. currently has in its portfolio about 65,000 apartments in Germany and London.

The share capital of Kition is being acquired through Aroundtown Ltd, a subsidiary of Aroundtown SA, which is duly registered under the laws of the Republic of Cyprus.

More specifically, Aroundtown Ltd acquires the share capital of REM International (Cyprus) Ltd, which owns the share capital of Kition Ocean Holdings Limited.

The €856 million investment in Ayia Phyla

In the summer of 2021, Yakir Gabay proceeded to acquire large areas of land, 949,916 sq.m., from the Bank of Cyprus’ Real Estate Management Unit (REMU), for the sum of €28 million.

The lots are located in Ayia Phyla, Limassol, 250 meters east of the Limassol-Platres road. More specifically, they are located on the eastern side of the under-construction highway that will connect Limassol with Moniatis, and slightly southeast of the Heritage Private School.

On the said parcels of land, and through the company Rofeno Properties Limited, Yakir Gabay is planning a complex development for which he submitted to the Environment Authority, an Environmental Impact Study and the proposed project is in public consultation until 26 June, 2023.

In further detail, the proposed project will include the following uses:

Private school.

European branded medical institution-rehabilitation center that will support a series of assisted living units.

Center for research and innovation.

Business park.

Sports facility-Organised multi-activity sports center.

Private green area of ​​the business park.

A single and organised residential development that will include elementary trade and leisure infrastructure (to serve the development itself).

According to the schedule and as stated in the submitted Environmental Study, the construction of the proposed project is expected to take place gradually. The strategic uses will likely be constructed in two consecutive phases, while the remaining buildings will follow in five phases, with approximately two years for each phase. As such, construction is expected to be completed by 2030. The school will be built in two phases, with the first expected to be completed by September 2024.

Yakir Gabay's career path

Yakir Gabay's fortune is estimated at $3.4 billion and he is the number 766 of the billionaires on the Forbes 2023 list.

Born in 1966 in Jerusalem, he holds a degree in economics and accounting, as well as an MBA from the Hebrew University.

The first steps in his career were in the Israeli public sector, while later he was involved in investment banking. Among other things, he was CEO of the investment banking division of Bank Leumi, one of Israel's largest banks.

He also served as chairman of Gmul Investments (Israel), which managed pension fund, real estate and securities investments totaling $30 billion.

He is the son of Meir Gabay, former Director-General of the Israeli Ministry of Justice, who also served as Israel's Civil Service Commissioner. His father was also elected to the position of President of the United Nations Administrative Tribunal while his mother was a senior official at the Israeli State Attorney's Office and Director of the Pardons Department in the State of Israel's Ministry of Justice.

(Source: InBusinessNews)