Nemirovsky & Gruzman:
The End of a Beautiful Friendship
Vlad Nemirovsky has taken control of most of the assets of the Exccelion group and is in the process of parting ways with Motti Gruzman. Nemirovsky now controls the largest projects: San Martin in Austria, Alva Park in Spain, and Green Wood in Bulgaria.
Has Nemirovsky truly benefited from this?
In August 2024, Nemirovsky took control of MGR Capital LTD, registered in England. With this, Nemirovsky completed his takeover of most of the assets of the Excelion group:
Alva Park Costa Brava in Spain
Green Wood Hotel in Bulgaria, which Nemirovsky already controlled earlier.
In this way, he consolidated under his control the three largest assets of the group. The transfer of control over these companies was done with mutual agreement.
Since Gruzman is facing a significant number of lawsuits for large sums, and his assets in Israel have already been seized, there is a real concern that creditors might also target Excelion’s assets in Europe and impose liens on them. Therefore, it was decided to transfer Gruzman's shares to Nemirovsky.
Nemirovsky himself exercised additional caution and moved to live in Austria, away from the creditors' reach. However, his assets in Israel remain exposed and could potentially be seized.
The plans were ambitious
San Martin:
For buyers unwilling to settle for a 70% return, an offer was made to provide an alternative property in Green Wood project in Bulgaria at a value 30%-40% above the local market price.
To resell the apartments in San Martin through the local agency in Austria.
Alva Park:
After failing to sell even a single apartment in the project, Nemirovsky decided to convert the complex into a hotel.
He replaced Alexander Gendelsman, his partner in managing Excelion hotels, who had previously failed in Green Wood project, with the Spanish company Smart Rental.
However, the hotel’s revenues could not cover Nemirovsky's debts to lenders from Ireland, Spain, Israel, and Russia. Still, Nemirovsky relied on his exceptional persuasion skills to attract new investors to provide additional funding and repay his previous lenders.
Green Wood:
Sales of units in this apartment hotel project halted at the end of 2023 when Nemirovsky realized he had overestimated the project’s profit potential and raised apartment prices by 30%-40%, which led to a sales freeze.
Alexander Gendelsman also miscalculated the profitability of the Green Wood hotel. Excelion failed to meet the rental payments promised in the contracts to the few buyers of apartments in Green Wood.
However, nothing came to fruition
Sankt Martin
Most buyers have organized a lawsuit against Excelion, Gruzman, and Nemirovsky, both in Israel and Austria, demanding their money back along with compensation.
Several Austrian agencies have refused to sell apartments in a project whose future remains uncertain.
Alva Park:
Nemirovsky seems unable to recruit the next "naive investor" to inject new funds into the failing project, and creditors are preparing to activate clauses in the agreement that allow them to enforce the collateral.
Spanish company Smart Rental is experienced and professional, but it cannot perform miracles. One of the most luxurious hotels in the area is now positioned as the cheapest in the region.
Green Wood:
No sales.
Replacing Gendelsman with Smart Rental company in this project as well has not improved the situation.
However, one thing did succeed – the blame game has begun!
Nemirovsky blamed Gruzman for all the issues in every project. He refused to fund the company offices in Ramat Gan, leading to their closure; he fired most of the company’s employees and suppliers; and he ceased payments to suppliers, including the prestigious and expensive Dr. Weineroth law firm, which had failed to assist in any of the ongoing legal cases.
Recently, Nemirovsky and Gruzman hired two separate law firms. Thus, it seems that mutual lawsuits are only a matter of time.
We, Excelion Victims Board, believe there is not much time left to recover the creditors' debts. First come, first served.
