Familiar to the general public Ista Lines, Whose main shareholders are Achishi Gal (31.6%) and the Student Union (21.3%), as a tourism company. But a large part, according to a fundraiser it has just completed, of its value, which is estimated at NIS 1.93 billion, actually comes from its extensive real estate activity. Issta brings in the insurance company The Phoenix As a partner in its real estate arm, and raises NIS 180 million for it, at a value of NIS 1.2 billion for the same activity that is concentrated in a company called Ista Real Estate.
The company is expected to complete an IPO on the Tel Aviv Stock Exchange within 30 months, and it includes projects for the construction of 3,000 housing units throughout the country, it owns and establishes 18 hotels in Israel and abroad and also develops commercial activity in neighborhood shopping centers.
Prior to Phoenix’s investment, Ista Real Estate is 90% owned by Ista Lines And the balance by CEO Shimon Siboni. The new investment is intended to generate financial resources for the continued business development of Ista Real Estate in the areas of residential, logistics and hotels and also to expand its sources of financing. The underwriter who accompanied the move was Barak Capital Underwriting, managed by Zvika Mans.
It was also agreed in the memorandum of principles that Issta Lanes will convert some of the owner’s loans it gave to Issta Real Estate to the capital. The balance of the owner’s loan amounted to NIS 600 million at the end of 2021. Issta Real Estate recorded a profit of 120 million last year, mainly due to an increase in value. The company reported in recent weeks that it has signed two lease agreements, for which it is expected to build a logistics facility and an automatic freezing and cooling facility with a total investment of about NIS 300 million.
Ista shares are now up 0.8%, in contrast to the negative trend prevailing on the stock exchange, with the Tel Aviv 35 index down 1.2%. The company’s current market revolves around NIS 1.9 billion.