Hachsharat Yishuv announced today (Tuesday) that it has signed an agreement for strategic cooperation with the Menora Mivtachim insurance company. Under the agreement you will invest Menorah InsurersAlong with training the settlement for urban renewal, about NIS 100 million in equity (60% of the partnership capital) to promote four residential projects whose construction is expected to begin in the next two years. To do this Settlement training Will provide 40% of the partnership’s capital, up to a total of NIS 66 million, so that in total the partnership owned by Hachsharat Yishuv and Menora will provide a total equity of up to NIS 166 million for these projects. This investment joins the report of the settlement’s training from yesterday that it signed an agreement with the Phoenix Insurance Company to finance the construction of a project on De Haaz Street in Tel Aviv.
The four projects in the framework of the cooperation are: Henkin in Holon in which 130 housing units will be built, Bavli project in Tel Aviv in which 55 housing units will be built, Phase A of the “Permanent Army Housing” project in Kiryat Yam in which 268 housing units will be built (out of 1,450 housing units at all stages The project), and Phase A of the “Ben-Gurion” project in Ramla, as part of which 270 housing units will be built (out of 3,082 housing units in all phases of the project).
In total, as part of the four projects, the partnership is expected to build 723 housing units, of which 577 are housing units for sale. The settlement training estimates that the income from the sale of the housing units will amount to NIS 1 billion (excluding VAT), and estimates the costs for the construction of these projects at NIS 835 million.
Various mechanisms have been established between the parties, including conditions for the provision of equity for projects, the manner in which projects are managed, the manner in which material decisions are made, and more. It was also agreed that the payment cascade of the projects, based on various working assumptions, would reflect the distribution of profits according to a ratio of about 70% for the training of the locality, and about 30% for Menora Mivtachim. Settlement training Urban renewal is entitled to an element of initiation fees from the profits of each project, as well as to success fees based on the achievement of profitability targets for each and every one of the projects.
On behalf of Hachshara Yishuv, the deal was led by the company’s CEO, Ofer Nimrodi and Oded Seter, VP of Finance, Investments and Business Development. On behalf of Menora-Mivtachim, the transaction was led by Nir Moroz, Chief Investment Officer, Uzi Levy, CEO of Menora Mivtachim Real Estate and Shoham Waldman, Real Estate Manager in the Investment Division.
The settlement’s training was represented in the transaction by Adv. Niv Sivan from the Herzog firm, and Adv. Ilanit Landsman-Yogev. Menora-Mivtachim was represented in the transaction by Adv. Orit Israeli and Adv. Little Efrati from the Fischer firm. Shekel & Co. and EY advised the parties.