The tide in the new housing market in Israel is also reflected in the results of the residential real estate entrepreneur, Aura Investments Which is controlled Jacob Atrakchi. Today, the company summarized 20201 with record results in all parameters, including the number of apartments that the company sold during the year and the net profit it recorded from its operations.
Aura operates in the field of urban renewal in Israel, and is defined as the largest and leading company in this field in Israel in 2016-2021 according to an index for urban renewal which was conducted in collaboration with the Real Estate Center and Madlan website. This compares with a net profit for shareholders of NIS 42.1 million recorded in 2020.
The fair improvement in net profit contributed, among other things, to the fair value of real estate for investment in construction, in the amount of NIS 57.3 million, compared with only NIS 7.4 million in 2020. The main change in this item in 2021 was due to an increase in the value of commercial property owned by the company.
In addition, the company recorded its share in the profits of an affiliated company in the amount of NIS 9.2 million, which also resulted from the adjustment of the fair value of real estate to the investment made by the affiliated company. Shekel at the end of 2020.
During 2021, Aura sold 553 apartments for NIS 1.23 billion, compared to 343 apartments sold by the company in 2020 for NIS 749 million. The company also set a goal today of increasing sales every year and reaching 1,000 units per year by 2025.
In 2021, Ora recognized revenues of NIS 821 million from the sale of apartments, compared to NIS 888.8 million in 2020. In addition, the company recognized revenues of NIS 70.5 million in 2021 from the sale of land and commercial space, compared to NIS 213.4 million in 2020.
“In a dramatic growth process”
Yaakov Atrakchi, controlling shareholder and CEO of Aura, said today that “Aura concludes a record year with excellent results and thus we are establishing our status as the largest and leading urban renewal company in Israel. We intend to continue to renew Israel and expand operations from the Gush Dan area and the center to the periphery in thousands of new apartments in the coming years.
“The company is in a dramatic growth process and knows how to create large land reserves that will serve us for many years to come, so there is no need to purchase land at unreasonable prices as we have in the past year. Our success is based on a real partnership with tenants and their great trust in us.”
Atrakchi added, “This year we finished building and inhabiting two entire neighborhoods in the largest urban renewal projects built in the center of the country that fully demonstrated Aura’s capabilities. 700 apartments were built in the Ono Valley project in Kiryat Ono and 900 apartments were built in the dependent gardens in Yehud.”
The stock of housing units in the company’s care at the end of 2021 was about 27,000 housing units, a significant increase of 33%, compared to the end of 2020. According to the company, the backlog of projects and its housing units ensures its growth in the next decade.
Deepens activity in the field of urban renewal
During 2021, Ora has engaged in 12 additional urban renewal projects. As part of these projects, the company is expected to establish approximately 6,570 new housing units (of which approximately 4,557 housing units will be marketed by the company).
The company also entered into a cash transaction for the purchase of real estate in the city of Lod. The land in an area of about 15 dunams with an approved plan for the construction of about 620 housing units and about 28,000 square meters of commercial and employment areas.
Currently, the company initiates, plans and establishes in Israel (including with partners) 57 projects that include about 27,000 residential units (the effective share of the company is about 20.4 thousand housing units). Out of the total projects, 48 projects are in the field of urban renewal in which the company will build 22,073,000 housing units (the effective share of the company is 15,806,000 housing units).
As part of the construction of the residential neighborhoods that the company is establishing, a total of approximately 29,000 square meters of commercial support areas will be established, which it will hold as an income arm, which are expected to yield NIS 39 million per year when populated.
According to the company, the gross profit on projects under construction, which has not yet been recognized for the years 2022-2026, amounts to NIS 1.8 billion. In addition, the expected profitability of planning projects (projects with a privileged majority, recognition in the years 2024-2029) amounts to another NIS 2.4 billion.