Ehud Barak: Kibbutznik-turned-tycoon
Israeli Defense Minister and former Prime Minister Ehud Barak can now add another title to his resume: real estate mogul. On Sunday, it was reported that Barak had sold his notoriously luxurious Tel Aviv apartment in the Akirov Towers, a five-room compound on the 31st floor whose amenities include a gym, outdoor pool, spa, and ...
Israeli Defense Minister and former Prime Minister Ehud Barak can now add another title to his resume: real estate mogul. On Sunday, it was reported that Barak had sold his notoriously luxurious Tel Aviv apartment in the Akirov Towers, a five-room compound on the 31st floor whose amenities include a gym, outdoor pool, spa, and breathtaking views, for $7 million. In 2003, he paid a mere $3.87 million for the 450-square-foot space.
Naturally, Barak took to Facebook to explain his decision:
"My wife Nili and I decided that the sale was inevitable faced with the recognition that this place of residence created a sense of alienation and detachment from vast sectors of the public."
In true Ehud Barak fashion, the apartment was sold to a foreign company. The veteran kibbutznik, who was raised in a 12-by-9 foot room with no running water or toilets and described his childhood as "happy" and "warm," entered the private sector after stepping down from a failed premiership in 2001. His business ventures included oil shale rock in Jordan, a stint as president of Satcom Systems, Ltd., a mobile communications company with ties to repressive African regimes, a post on the advisory board of venture capital firm Tamir Fishman & Co., and a network of parking lots in Istanbul (which failed). All of these expeditions, though, were peas and carrots compared to his passion for working with international hedge funds. According to son-in-law Zvi Lotenberg, "the bulk of Barak’s activity takes place abroad, for a number of the world’s largest hedge funds and investment firms, whose names he declined to reveal."
Barak may maintain that he has been transparent regarding his business transactions, and that he has paid his taxes, but in 2006 he put away some money in a favorite tax haven, using "an account of 38 million Japanese yen (the equivalent of $380,000) in the Cayman Islands branch of Mizrahi-Tefahot Bank as collateral to obtain a loan from the bank."
Compared with the corrupt financial escapades of Israeli leaders like former prime minister Ehud Olmert, this is pretty vanilla, but there are certainly more than enough former government officials with extensive tastes in the world. Prince Bandar bin Sultan, the former Saudi ambassador to the United States, built the 95-acre estate of Hala Ranch in 1991 just miles from Aspen, which was the "most expensive single-family residential property in the nation on the market" when it was listed for $135 million in 2007. Former British prime minister Tony Blair bought a house in London’s posh and swanky Connaught Square for 3.5 million pounds. When Jacques Chirac stepped down from the French presidency in May 2007, he rented an apartment overlooking the Seine on Paris’ Quai Voltaire. What makes Barak notable is that he’s still on the government payroll.
So where will Barak end up next? Perhaps the David Promenade? Or maybe he’ll downsize to this four-bedroom stunner on Atzuk Beach? Wherever he ends up, the next home for this cigar-chomping pol promises to be far from the kibbutz.