Israeli Firms in $75M St. Pete Land Deal

Menora Mivtachim Holdings, an Israeli insurer, and GTC Real Estate will buy land in St. Petersburg for 48 million euros ($74.8 million).

The companies plan to build an office complex on the 4.3-hectare site, in the northwest section of the city, around 1.5 kilometers from the city center, Tel Aviv-based Menora said last week in a stock exchange filing. The land will be purchased by a joint venture of subsidiaries of the two companies, as well as Dorea Investment & Developments, an Israeli property developer, the companies said.

The Russian economy is growing at more than 7 percent a year, boosted by its position as the world's largest energy exporter. Israeli billionaire Lev Leviev's Russian property unit, AFI Development, said profit almost doubled last year on surging demand for quality offices and apartments.

The 110,000-square-meter project will be completed sometime from 2011 to 2013, the companies said.

GTC, which invests mainly in Eastern Europe, is a unit of Kardan, a Dutch-Israeli company with holdings in real estate and finance.