The insurance industry in Israel is becoming the most dominant factor in the real estate market, and not only in terms of financing the industry. All the leading companies, without exception, invest in the shares of real estate companies in the construction industry in general and in urban renewal in particular. The last one was Menorah, which invested in training the community.
The investments are made on the fairly well-founded assumption that the “boom” in the construction industry will continue and not stop, at least for the next two years. Yesterday it was announced that Phoenix Insurance will invest NIS 112 million in the high school builder subsidiary Urban Renewal. The transaction will be made at a value of NIS 562 million (after the money), after which the Phoenix will hold 19.9% of the subsidiary.
The Phoenix will also receive an investment framework of NIS 125 million, which will allow it to invest directly in the project companies alongside the high school builders of urban renewal. It was further stipulated in the transaction that the parties will work to issue the urban renewal company within four years. The Phoenix will also receive three-year options for the purchase of 5% of the shares of the listed high school parent company, which are traded at a value of NIS 706 million.
Bonni Hatichon Urban Renewal operates in the field of urban renewal, which does not include projects of TMA 38/2 and the ONO ONE project in Kiryat Ono. “A thousand housing units in projects in areas of demand. The cooperation with the Phoenix is an expression of confidence in the company’s capabilities and the quality of the projects.”
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