The largest non-bank financing given to a residential project in Israel is underway. Barkat, managed by Adi Gazit, one of the leading companies in providing credit in the real estate industry, today reported another milestone in promoting the Kikar Hamedina project. Barkat, which is expected to provide funding for the Kikar Hamedina project, updates that as part of Barkat’s sources, it entered into an agreement to receive a loan of NIS 1.7 billion from the insurance companies, Migdal and Clal, for the financing of the Kikar Hamedina project. As part of the project, 3 luxury glass spiral towers will be built that will include about 450 apartments, each building will have about 40 floors above an underground parking lot for personal use (906 parking spaces), and a privately owned public parking lot (720 parking spaces), park and parking, including An artificial lake, in an area of about 50 dunams. The project will be built in “Kikar Hamedinah”, H. Bayer St., Tel Aviv-Yafo on an area of 77.7 dunams. The architect of the project is the Aski Mor Sivan Architecture Office.
Last month, Barkat updated that it has signed a financing agreement with most of the borrowers out of about 240 rights holders in Tel Aviv State Square, and it continues the process of signing the agreement to provide credit facilities for the project, with the total credit provided by Barkat under the financing agreement. NIS 2.05 billion.
It should be noted that the provision of the loan is conditional on the fulfillment of a number of conditions precedent, including the completion of the signing of the loan agreement and the registration of the necessary liens.
The provision of credit is a significant step for Barkat, towards the completion of financing for the complex and prestigious residential project, which is estimated at a budget of NIS 4.3 billion. The project is in the excavation and dipping stage, and all the work is expected to last about 5 years.
Adi Gazit, CEO of Barkat: “This is a flagship project for the company and the entire industry. We are pleased with the significant expression of trust that Barkat has received from the leading insurance companies Clal and Migdal, and consider this an important milestone in the process of promoting the financing agreement for the State Square project, which is a complex and enormous project. We will continue to promote and accelerate the scope of the company’s activities, with financing various projects throughout the country and increasing Barkat’s credit portfolio for groups with landowners, accompanying entrepreneurs, and bridging loans. ”
Barkat updated in its recent reports that its loan portfolio, as of March 14, 2002, stands at NIS 360 million, compared to NIS 276 million at the end of 2020. At the same time, the company has increased its credit facilities, which serve as a major source of financing. To its customers, for a total of about NIS 770 million. In addition, it reported revenue in advance (not yet recognized) in the amount of NIS 13.5 million, compared with NIS 8 million in 2020.
Barkat is controlled by Roni Biram, the company’s chairman, Gil Deutsch, and Adi Gazit, the company’s CEO, focuses on providing construction to developers according to the Sale Law, to purchasing groups and landowners, and bridging loans.