MIRA INFORM REPORT

 

 

Report No. :

510107

Report Date :

28.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

PESO-GOV LTD.

 

 

Formerly Known As :

I.P. GAYA PROJECTS LTD.

 

 

Registered Office :

3 Rothschild Blvd. Tel Aviv 6688106

 

 

Country :

Israel

 

 

Date of Incorporation :

15.02.2010

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

A construction company, specializing in high end ‘boutique’ residential apartments.

Note: Some of these construction projects are old historical buildings, which are being restored and upgraded (such as adding underground parking lots, adding additional stories, elevators.).

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

Israel

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

ISRAEL - ECONOMIC OVERVIEW

 

Israel has a technologically advanced free market economy. Cut diamonds, high-technology equipment, and pharmaceuticals are among its leading exports. Its major imports include crude oil, grains, raw materials, and military equipment. Israel usually posts sizable trade deficits, which are offset by tourism and other service exports, as well as significant foreign investment inflows.

 

Between 2004 and 2013, growth averaged nearly 5% per year, led by exports. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals, following years of prudent fiscal policy and a resilient banking sector. Israel's economy also weathered the 2011 Arab Spring because strong trade ties outside the Middle East insulated the economy from spillover effects.

 

Slowing domestic and international demand and decreased investment resulting from Israel’s uncertain security situation reduced GDP growth to an average of roughly 2.8% per year during the period 2014-17. Natural gas fields discovered off Israel's coast since 2009 have brightened Israel's energy security outlook. The Tamar and Leviathan fields were some of the world's largest offshore natural gas finds in the last decade. Political and regulatory issues have delayed the development of the massive Leviathan field, but production from Tamar provided a 0.8% boost to Israel's GDP in 2013 and a 0.3% boost in 2014. One of the most carbon intense OECD countries, Israel generates about 57% of its power from coal and only 2.6% from renewable sources.

 

Income inequality and high housing and commodity prices continue to be a concern for many Israelis. Israel's income inequality and poverty rates are among the highest of OECD countries, and there is a broad perception among the public that a small number of "tycoons" have a cartel-like grip over the major parts of the economy. Government officials have called for reforms to boost the housing supply and to increase competition in the banking sector to address these public grievances. Despite calls for reforms, the restricted housing supply continues to impact younger Israelis seeking to purchase homes. Tariffs and non-tariff barriers, coupled with guaranteed prices and customs tariffs for farmers kept food prices high in 2016. Private consumption is expected to drive growth through 2018, with consumers benefitting from low inflation and a strong currency.

 

In the long term, Israel faces structural issues including low labor participation rates for its fastest growing social segments - the ultraorthodox and Arab-Israeli communities. Also, Israel's progressive, globally competitive, knowledge-based technology sector employs only about 8% of the workforce, with the rest mostly employed in manufacturing and services - sectors which face downward wage pressures from global competition. Expenditures on educational institutions remain low compared to most other OECD countries with similar GDP per capita.

 

Source : CIA

 

Company name and address

 

PESO-GOV LTD.

 

Telephone               972 3 736 91 10

Fax                         972 3 736 90 11

Email:                     info@peso-gov.co.il

3 Rothschild Blvd.

TEL AVIV                6688106            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

A private limited company, incorporated as per file No. 51-440027-4 on the 15.02.2010.

 

Originally established under the name I.P. GAYA PROJECTS LTD., which changed to the present name on the 19.07.2016.

 

 

SHARE CAPITAL

 

Authorized share capital NIS 39,100.00, divided into -

39,100 ordinary shares of NIS 1.00 each,fully issued.

 

 

SHAREHOLDERS

 

1.     Shemer Gov, 50%,

2.     Ido Peso, 50%.

 

 

SOLE DIRECTOR

 

Ido Peso.

 

 

JOINT GENERAL MANAGERS

 

1.     Shemer Gov,

2.     Ido Peso.

BUSINESS

 

A construction company, specializing in high end ‘boutique’ residential apartments.

Note: Some of these construction projects are old historical buildings, which are being restored and upgraded (such as adding underground parking lots, adding additional stories, elevators, etc.).

 

Most of activities are in Tel Aviv.

 

According to subject’s website, currently marketing apartments in 12 projects (all in Tel Aviv).

 

Operating from premises in 3 Rothschild Blvd. (22nd floor), Tel Aviv.

Website: www.peso-gov.co.il

 

Number of employees not forthcoming.

 

 

MEANS

 

Financial data not forthcoming.

 

On the 14.05.2018, subject realized the option to acquire 3 assets in Central Tel Aviv, for NIS 142 million.

 

There is 1 charge for an unlimited amount, as well as 1 charge for the sum of NIS 350,000 registered on the company's assets (fixed assets), in favor of Mizrahi Tefahot Bank Ltd. and an individual (charges placed February-March 2018)..

 

 

REVENUES

 

Sales figures not forthcoming.

 

 

BANKERS

 

Bank data not forthcoming.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learned.

 

Despite our efforts, we were unable to speak with subject's officials, as they were always unavailable. We left messages which so far remain unanswered.

 

Ido peso comes from a veteran family in the construction field, active in Israel about 35 years.

 

From the Central Bureau of Statistics (CBS) data, investments (Gross Domestic Capital Formation) in construction for dwelling (residential buildings) in 2017 rose by 1.2% from the previous year (quantity change), which follows increase of 8.1%, 1.5% & 6% in 2016, 2015 & 2014, respectively.

Investments in construction not for dwelling (public institutions, commercial and industrial building) rose in 2017 by 6.3% (after 2.6% rise in 2016, 1.1% in 2015 and 2% in 2014), while investments in other construction works (e.g. roads, infrastructure) saw 16.6% climb in 2017, continuing the upward trend (by 3.8%) in 2016 (after declining by 4.2% in 2015 and -15.5% in 2014).

The annual volume of houses renovations according to the Renovations Contractors Association is estimated at NIS 15 billion, and the turnover of the ceramics branch is estimated to capture NIS 2.3 billion (which comprises some 80% of the branch's total volume).

 

The housing prices were rising for the past years (rose by 8% in 2015) due to high demand coupled with restricted supply, so the Government keeps attempting to decrease prices, also by increasing the supply side and other steps.

From the CBS data, in 2017 the volume of building starts for dwelling (which is a dominant indicator for the trend in the building sector) amounted to 46,320 housing units, compared with 53,950 units in 2016, 53,748 units in 2015, 47,520 in 2014, 47,747 units in 2013, and 43,452 housing units as building starts in 2012), all well below the Government's goal for 60,000 building starts.

The number of building finishing in 2017 reached 47,449 housing units, compared with 46,070 units finished in 2016, 43,908 units in 2015 and 44,634 housing units in 2014.

 

There were 112,989 dwellings under construction as of end of 2017, compared with 114,310 dwellings in end of 2016 and 106,477 dwellings in end of 2015.

Number of dwellings transactions in 2015 reached a climax with total of 120 thousands transactions (rise in both new and second-hand apartments), but started decreasing in 2016, due to the government's policy of tax raising. That decreasing trend intensified into 2017. According to the review by the Chief Economist at the Ministry of Finance, in 2017 94,000 apartment were sold, which represents decrease of 14% from 2016.

 

 

SUMMARY

 

Notwithstanding the lack of updated data from subject's officials, considered good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 67.95

UK Pound

1

INR 91.87

Euro

1

INR 80.27

ILS

1

INR 18.93

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

NIY

 

 

Report Prepared by :

DNS

 

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.