Last year, the five largest banks provided credit to entrepreneurs and real estate contractors in the amount of NIS 44.5 billion, an increase of 26% compared to 2020. In light of the fact that the two largest banks – national andThe workers , Very close to the ceiling allowed by the Bank of Israel, which stands at a temporary order for 26% of the credit portfolio, more and more players want a share of the pie that is only continuing to grow and is expected to grow in the coming months. These include institutional entities and non-bank credit companies.
The last to do so by the hour is the businessman Eyal Lapidot, Former CEO of Phoenix and Housing and Construction, who in recent months has established a real estate financing fund called Archimedes. Other senior members of the local capital market joined the fund: Roi Yakir, Tali Richman, who will serve as CEO, and Lior Milstein, who will be the deputy chairman of the board.
Lapidot, who will serve as chairman of the company, and Yakir, who will chair the credit committee, have previously collaborated in both Phoenix (where Yakir served as chief investment officer under Lapidot) and Shikun VeBinui, where Lapidot brought Yakir after being appointed CEO. Areas of real estate and finance from their previous roles.
A bite at the hegemony of the banks
The credit market for construction support in Israel amounts to NIS 110-120 billion a year, and is controlled by the banks. In view of the further break in the record mortgage volume issued in March – NIS 3.5 billion, and the government’s plans to increase the supply of apartments, Archimedes wants to join other non-bank credit companies, which together with institutional entities are trying to bite into the banks’ market segment. For construction.
Archimedes announced a significant raising of up to NIS 1 billion from three central banks – Hapoalim, Leumi and Mizrahi Tefahot, along with the provident and pension company of the Moore Investment House.
By the first quarter of 2022, the fund had already provided NIS 240 million in credit facilities and NIS 580 million in sales law guarantees, for about 10 projects in the field of residential real estate development. This means that the company will record income from both the interest on credit Commissions on the guarantees it provides to homebuyers for the payments they make to developers, and Archimedes is in advanced talks to accompany about 15 additional projects, amounting to about NIS 650 million, and about NIS 3 billion under sales law guarantees.
Tali Richman, CEO of Archimedes, who until recently served as director of the real estate division at Discount, said that “we have set ourselves the goal of challenging the market, and being a significant alternative to the financing options currently available to real estate companies and developers. Archimedes was established out of an in-depth understanding of the industry and the vast experience we have accumulated over the years in the field. We offer speed of action, flexibility, creativity and professionalism, which will position Archimedes as a key player in the field. “