Itai Goren, CEO of Buligo Capital (Photo by Oshrit Chachmon)
The real estate investment company Buligo Capital announces this morning (Sunday) the sale of the housing cluster Antioch In the state of Tennessee, USA, for $ 117 million. Boligo purchased the land for a project that includes 14 buildings with a total of 364 housing units and a tenants’ club, in 2020, when construction of the project and its population lasted about two years, with a total investment of only $ 62 million. .
The expected free cash flow from the sale transaction will be approximately $ 80 million, reflecting the limited partners (LPs) Annual return of about 54% and capital multiplier at a rate of about 2.8 after success fees to Boligo and before tax. Following the successful realization, Boligo is expected to recognize a success fee of approximately $ 5.3 million.
About two weeks ago, Boligo reported another successful realization with the sale of the housing cluster Miracle In the city of Salt Lake City in Utah, which includes 183 housing units, for $ 105 million, when the property was purchased in 2020 for only about $ 77 million. This project provided investors with an annual return of about 60% and a capital multiplier of 1.9, after deducting success fees. Following the completion of the transaction, Boligo recorded a success fee of $ 3.2 million.
At the same time, last week Boligo published its reports for 2021, with an impressive threefold increase in revenue and a 170% increase in net profit. At the end of 2021, Boligo’s revenues grew by 194%, from $ 10.3 million in 2020 to $ 30.2 million in 2021. Net profit increased by 170% to $ 13.6 million, compared to a net profit of about $ 5 million in 2020.
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Buligo’s revenues in 2021 from management fees, transaction fees and entrepreneurship totaled $ 12.9 million, compared to about $ 7.8 million in 2020. Success fees revenues jumped to $ 15.5 million in 2021 and are expected to increase, according to Boligo’s estimates, to about $ 20.5 million In 2022. Boligo estimates that the total expected revenue in 2022 – success fees, management fees and transaction and start-up fees – will be about $ 45 million, an increase of about 50% compared to 2021.
Boligo predicts that in 2022 it will invest about $ 1.1 billion in 21 new projects in the United States in the areas of multi-family (about 70%), logistics centers, commercial centers and nursing homes, compared to an investment of about $ 700 million in 2021. The volume of Boligo’s private investor investments in 2021 was approximately $ 255 million and is expected to increase to $ 412 million this year, while increasing the company’s commission income. And it estimates that the expected cash flow to investors will be $ 271 million.
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Boligo has so far acquired 115 properties in the United States, with a cash volume of about $ 3.1 billion, with most of the equity for the transactions coming from the company’s private investors, with a volume of $ 1.1 billion, along with bank financing. Boligo has so far sold about 50 properties. Which underwent an improvement process, and this year for the first time crossed the $ 1 billion mark in realizations, which rose to about $ 1.1 billion.
At the same time, Boligo is also reporting a significant increase in the economic value of its holdings in startup Reigo (Reigo) From the field of fintech, which focuses on financing the first lien on real estate properties in the US based on artificial intelligence. Following a $ 60 million round of value raised by Reigo, Buligo’s holding (20%) increased from $ 2.1 million to $ 12.3 million.
Boligo, established in 2012, works to purchase, build, improve and manage real estate properties in the United States for investors, and controls the entire value chain – from property locating, financing, planning, Initiation, improvement, and until the management of the property on an ongoing basis and its realization. Boligo Capital specializes in strategic real estate investments in the United States, with an emphasis on housing (multi-family) commercial centers, logistics centers and nursing homes in areas of demand and growth, especially in the southern United States, and in the mountainous countries in the West.. Boligo is currently traded at a market value of about NIS 800 million, with an increase of about 150% from the date of issue.
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