Clal Insurance and Finance is deepening its investment in the long-term rental market and has signed a large financing transaction with the Harit Magorit Fund and Manrav.
Will grant credit in the amount of NIS 665 million to finance 4 residential projects, with a total volume of 506 housing units
Clal Insurance and Finance has signed a major financing deal with The Harit Foundation Magorit And the real estate company Minrav, For extensive housing projects in Israel, and has been in the residential market in Israel for many years, by providing credit to entrepreneurs to accompany the construction of projects. As part of this transaction, the company is expected to provide total credit in the amount of NIS 665 million, for the benefit of financing 4 residential projects for rent, with a total volume of 506 housing units.
The projects include the purchase of 50 apartments in the yard project in the Neve Sharet neighborhood, in Tel Aviv, as well as the construction of 3 projects within the tenders of the government company “Apartment for Rent”, in the cities of Beer Yaakov (279 units), Rishon Lezion (78 units) and in the Malcha neighborhood In Jerusalem (99 housing units).
Yossi Dori, Deputy CEO and Director of the Investment Division at Clal Insurance and Finance, said“Clal Insurance and Finance is expanding its exposure and investment in the field of residential projects in Israel. In the last two years alone, we have invested about NIS 2.5 billion in housing projects in Israel, amounting to about 1,700 housing units. Our extensive experience in the real estate world, in Israel and abroad “Allows us to continue investing for our colleagues in leading real estate projects, such as the current deal to finance 4 rental housing projects in Israel that include 506 housing units, joining a long line of projects that Clal Insurance and Finance has funded in recent years.”
Magorit is a Reit foundation for housing in Israel. As part of this transaction, three projects (in partnership with Minrav – Magorit 60%, Minrav 40%). The transaction will be financed at the rate of LTC-73% / 75%, with LTV at the end of the construction not less than 67%. The loans are for the construction period and the operating period and are expected to end in 2028 (approximately 7 years). During the construction period, the margin will be 2.85% above the yield on indexed government bonds, and during the operating period, the margin will be 2.60%.