Electra Real Estate Introduces UK: Raises £ 200m with local partner for fund to invest in offices | The British partner has over 25 years of experience in the field of UK offices Electra Real Estate currently manages about $ 2.7 billion, mainly through funds that specialize in the housing cluster, a debt fund and Reit in the construction stages that will specialize in the hotel industry.
Shi Klein 14.11.2021
Company Electra Real Estate, From the Elco Group and managed by Gil Roshink, which currently operates mainly in the United States, continues to expand its operations, and is now also entering operations in the United Kingdom. The company is currently updating on the expansion of its activities in the field of investment funds under its management, and on the establishment of a fund that will invest in the field of offices in the UK, and that will raise a sum of around £ 200 million from private and institutional investors.
In order to advance the fund’s establishment, Electra Real Estate has contracted with a local partner in the UK, which has over 25 years of experience in the UK office space, during which it has carried out extensive transactions, including with institutional entities from Israel and the UK. The partner currently manages properties worth about £ 1.2 billion in properties with a total area of about 3 million square meters.
The acquisition of the properties is expected to take place through partnerships and investment funds (Private Equity) when the company will serve, together with the local partner, as a general partner (GP) and will raise limited joint funds (LPs), similar to the way the company operates in rental housing (housing files, single family And the debt fund for housing clusters) as well as in the hotel sector.
Electra Real Estate Ended the first half of 2021 with a sharp increase in its revenues to NIS 224.7 million, And with an increase of about 183% in net profit of NIS 128.6 million.
Electra Real Estate The Elco Group currently manages approximately 38.8 thousand housing units in 122 housing groups in the United States, including 24 transactions To provide loans for the purchase of housing files through the debt fund. In addition, the company owns about 650 detached houses and two hotels in the United States.
Amir Yaniv, VP of Electra Real Estate Business Development: “After an in-depth and lengthy analysis of the UK office market and the opportunities inherent in it, we entered into a Co-GP agreement with a local partner with extensive experience, local connections and a strong reputation for establishing an activity arm New to Electra Real Estate, which will raise around £ 200 million, and will be the first outside the US to invest in investment funds.
“The UK economy is the sixth largest in the world and is strong, stable, multi-sectoral and transparent. In recent years, the demand gap between Grade A office properties and Grade B / C properties has been increasing, and the “Flight to Quality” phenomenon has been expanding. The corona plague has accelerated this trend and created opportunities for value creation by taking advantage of the gaps between demand, ie the improvement of properties with significant potential in central locations.
“The fund, which will be set up for operations in the UK, is in addition to our extensive fund operations in the United States, which currently manage close to $ 2.7 billion.”