Electra Real Estate announces that it intends to establish a second debt fund to finance housing collections in the United States with a fundraising target of approximately $ 500 million. The fund’s purpose is to provide loans (Mezzanine Loans) and preferred equity investments to finance housing collections in the United States.
The first debt fund, which completed the fundraising phase in June 2021, raised about $ 285 million when the original fundraising target was about $ 200 million, within about a year and a half from its inception. As of the date of publication of the reports for the third quarter of 2021, the Fund has executed 32 transactions for financing housing files in the United States. The minimum contractual return on the existing portfolio is approximately 12%.
The company recently announced its intention to set up a fourth fund to invest in US housing clusters with a $ 1 billion fundraising target, a private REIT to purchase hotels and is working to set up a fund to invest in UK offices, raising £ 200m from eligible private and institutional investors.
As of the date of publication of the reports for the third quarter of 2021, the Company manages approximately $ 2.7 billion through 4 active investment funds, management of investment partnerships in detached houses and REIT for investment in hotels.
Electra Real Estate As of the date of publication of the reports for the third quarter of 2021, the Elco Group manages approximately 31,000 housing units in 97 housing groups in the United States, in addition to 32 transactions for financing housing group loans through the debt fund. In addition, the company owns approximately 1,050 detached houses and three Hotels in the USA.
Amir Yaniv, CEO of Electra Real Estate: “We are currently announcing an intention to raise approximately $ 500 million for the second debt fund, which will focus on providing Mezzanine loans and Preferred Equity transactions for the purpose of financing housing files in the United States. Similar to the first debt fund which is showing excellent results, this fund will also take advantage of our in-depth market knowledge and significant relative advantages as significant players in the industry, for the successful implementation of the business model. This fund, together with the establishment of the Fourth Investment Fund for Housing, Reit Hotels, Expansion Management of Investment Partnerships in Detached Private Homes and an Investment Fund for Offices in the UK, will form an additional tier for the company’s growth engines, as part of the investment fund management strategy (GP).