Globes quotes Leviev:
“I like to concentrate on the future. What has happened has happened. But our main mistake was the investments in the US.”
My take on Leviev’s American mistake:
- Invested with a splash at the top of the bubble purchasing height profile = most overpriced properties.
- Instead of partnering with professional developers, partnered with a hustler like himself Boymelgreen, partnership went sour almost immediately.
- People who operate in Israel, Eastern Europe and Russia, where projects are built by greasing the approval process, often can’t operate in USA, lacking municipal and political connections.
- Design and approval process in America is much more expensive and much more protracted compared to the European construction. Design and approval in America can approach 15% of development costs (my guess only), a shock to the European developers.
- Any activity in America, especially urban development, is a subject to litigation. European developers never fully account for this risk, and litigation is inevitable for a large project, especially when the investment turns red and market collapses.
{ 3 comments… read them below or add one }
It would seem to me that if the proper amount of resources were committed, a 5-10 year structured business plan developed, engineered to take a hit here and there, these circumstances could have been avoided. Secondly, The tendencies of Israel based companies are to use business contacts and sources that fit into their hearts (comfort zone) and not in there business brain.
Out of the box thinking by accountants & marketing people should be the type that where the vision doesn't get lost in dozens of self interested individuals. Companies around the globe, with a few exceptions have been seduced by short term gratification and (un)realistic expectations. Fewer executives at the top and more grunt work intelligence.
Charles, everyone played a fast game then, not only Israelis, don't get me started on Dubai.
Ben, Your right. As a traveling (diamond & jewelry) salespresentative for 32 years I dealt with every character from every ethic background. It's amazing how differently people make choices on the same challenges and issues. My standard mantra ”trust no one” especially those closest to you in business when the stakes are high. I wish G_d could re-arrange my gray matter to have the patience and foresight. After all we are his vessels, but that doesn't always mean were an open conduit when the immediate stress of the day closes them. I also understand how the global economy and perceptions have been skewed by fear and greed.
The US politicians should have been more pro-active at the G-8 conferences an not been so
arrogant with those you could potentially change a multitude of issues, including currency changes.Maurice Templesmen predicted many of the current things that are happening now, but when hespoke at the G-8 – 7 -8 years ago there were no supporting actors. I do believe you will be successful, more than you can see at the moment. Seize the moment. Take bold, out of the box approaches. I'm hoping for G_d's guidance through this murky period. Get some outside opinions and general ideas of people who are not familiar with all the aspects
of your business. Just throw out some hypotheticals to a narrowed data base.
I wish you well. My best, Charles Foster
Charles R. Foster
Professional Representative