The Hajjaj Group: In Q3 revenues decreased to NIS 102 million

The Hajjaj Group concludes a quarter with a decrease in revenues to NIS 102 million, compared to NIS 134.5 million in the corresponding quarter. The company's gross profit also decreased, by a similar rate, to NIS 63.6 million, compared to NIS 94.6 million in the corresponding quarter. The company explained that the gap is due to one-time events.
"In the third quarter of last year, profitability was higher mainly due to the recognition of a profit from the sale of land in the Einstein project in the amount of NIS 64 million. In contrast, the sale of land in the Bat-Yam project, which was recognized in the third quarter report of 2022, yielded a gross profit of approximately NIS 23 million to the company. The gross profit after neutralizing these transactions is NIS 22 million, compared to NIS 17 million in the previous quarter and NIS 7 million in the corresponding quarter last year," Hajj's report stated.
In the summary of the first nine months of 2022, the group's revenues amounted to NIS 218.7 million, compared to NIS 179.5 million in the corresponding period. The gross profit during this period also increased and stands at NIS 90 million compared to NIS 85.7 last year. The increase in income from the beginning of the year is explained by the addition of an estimate of NIS 70 million to the commercial areas in Einstein 33a and 35.
Last June, the company sold 75% of the commercial space in the projects at 33 and 35 Einstein Street in Tel Aviv to Clal Insurance and received about 5% of the property's value, NIS 19 million. This is about 13,400 square meters of commercial space at a cost of about 50,000 Shekel per square meter.
The Hajjaj Group operates, sometimes with partners, in a variety of fields: organizing purchasing groups, initiating projects in Tel Aviv and hotel activities together with the Selina Company. The company is also active in the market for commercial space, employment and yielding properties.
Among the company's prominent projects: the Shadl tower in Tel Aviv, which is to be built on a 3.3 dunam lot between Yavneh, Yehuda Halevi, Shadl and Rothschild Boulevards - the company is trying to sell its rights in this complex; a residential project near the Mandarin Hotel - the company purchased the land division in March 2022 for NIS 393 million; a residential tower project in the Givat Amal-Bavli neighborhood - the land was purchased in February 2021 for NIS 188 million; a project to establish an employment and trade complex in the Ludvipol neighborhood, in south Tel Aviv - the company is now working to complete the acquisition of the rights to the land.
Hajjaj cooperates with the Selina group in the field of hotels, and in this framework purchased, last May, 19 dunams in the mountainous Jordan region, in order to build a hotel there. Also, last October, the group entered as a partner, through the Regency subsidiary, in a hotel project by the Sea of ​​Galilee.