By Nathan Sheva

November 21, 2005

A year ago, in an interview, PR man Rani Rahav groused that he was still paying off his mortgage. He can apparently rest easy now. His fee for mediating the sale of Housing & Construction to Zvika Barinboim's business group is reportedly some NIS 15.5 million.

The parties to the deal are both clients of Rahav, who has gained a reputation for serving some of Israel's biggest companies and most renowned individuals. Shari Arison, one of Bank Hapoalim's controlling shareholders, is selling her controlling interest in H&C. Barinboim is the buyer.

Each party is to pay half the mediation fee, according to the information Haaretz has received.

Originally Barinboim was supposed to buy H&C together with Benny Steinmetz, but the diamond baron pulled out.

Barinboim found a new partner, though: a group of American real estate investors. The group of investors includes Sonny Kahn, the Miami-based chief executive of New York-based condominium company Crescent Heights, which is involved in projects throughout the U.S. The price for the transaction values H&C at $385 million.

Rahav declined to comment for this report, either about the prices, the identity of the American buyers, or his mediation reward. He did confirm in an interview that he has been known to broker deals between his clients, for a fee.

"Why should lawyers and accountants get a fee, but PR-men can't? It's nothing to be ashamed about," he told Haaretz. "I worked for it, and the idea for this deal is not part of my day-to-day service that I offer the client."