After several months of uncertainty, a company succeeded Collapsed real estatethe construction entrepreneurship arm and the yielding assets of Caruso familyto complete an initial share offering last week – not before cutting by about 40% the value it aspired to at the beginning of the process (given the crisis in the markets and the stagnation in the initial market.
Along with this, Globes learned that Carso had to change the structure of the offering, so that the company’s shares could be added to the stock exchange’s flagship indices. In this framework, three family members had to part with their share of control, and in fact ceased to serve as stakeholders in the company (less than 5% of its shares). In this way, the rate of public holdings in Kerso Real Estate will be over 30% of the capital and will allow the company’s stock to enter the index in the future Tel Aviv 125 . A value of about NIS 2 billion after the money places Carso Real Estate around the 100th place in the same index in terms of value.
In the IPO of Carso Real Estate, an amount of NIS 332 million (gross) was raised based on a company value of NIS 1.8 billion before the money (compared to the NIS 3 billion it had sought at the beginning of the process). About half of the NIS 167.7 million raised went into the company’s coffers, and the balance (NIS 164.3 million) flowed To the pockets of the sellers: Sara Carso Bouton, Moshe Carso and Edna Oz Carso (who held the shares through a private company). The three sellers are the children of the late Benjamin Carso, one of the six children of the founder of the family’s business empire, the late Moshe Carso.
Who remains in control?
The sale of the shares by the three family members left each of them with a share of 4.96% of Kerso Real Estate shares and they gave up their share of the core of control remaining in the hands of other family members. In addition, the three (Sarah, Moshe and Edna Kerso) agreed on a voluntary self-blocking from the sale The same voluntary blocking was done for a significantly longer period of time than required by the stock exchange regulations.
Those remaining as the controlling owners of Kerso Real Estate are Yoel Kerso, Ariel Kerso, Tzipora Mizrahi Kerso, Yoni Goldstein Kerso, Orli Hoshan Kerso and Shlomo Kerso, with the six holding different parts and a total of 67.8% of the share capital.
With the completion of the offering, Carso Real Estate became the second stock market arm of the Carso family. The other is Collapsed Motors an importer of Renault, Nissan, Infiniti and Dacia vehicles to Israel, which the family issued more than a decade ago and is currently trading at a value of approximately NIS 1.6 billion, after generating a return of only 14% since its issuance in 2011.
The offering was led by Kerso Real Estate underwriting Orion underwriting alongside Discount Capital Underwriting, Leumi Partners Underwriting and Barak Capital Underwriting.
Has a portfolio of 55 projects
Carso Real Estate began operating in 2009 at the end of a structural change process that included a split between the automotive and real estate activities of the Carso family members. The company specializes in the initiation and development of residential, office and neighborhood commercial real estate alongside the holding and management of its yielding assets.
Last year the members of the ruling family settled a conflict with one of the family members, Maccabi collapsed, when they purchased his share in July for NIS 137.5 million. This price gave the real estate company a value of NIS 1.1 billion – about 40% less than the value at which the company was issued.
Carso Real Estate is managed by Dan Farnes and it owns a portfolio of 55 different projects, in which 11,000 apartments are being built for marketing. The company’s share of them is 69%. The company also owns 16 income-generating properties that cover 75,000 square meters. And she is involved in the construction of more properties that will cover 227 thousand square meters.
The revenues presented by the company in last year’s summary amounted to NIS 705 million, an increase of 80% resulting from both an increase in the recognition of sold apartments and positive appraisals of the value of its investment real estate. The jump in revenues translated last year into a sharp improvement in net profit which stood at NIS 78.6 million against a loss of 1.1 1 million shekels in 2020.
In the first quarter of this year, revenues totaled NIS 262 million and consisted of revenues from the sale of apartments, land and construction services in the amount of NIS 180 million, rental income of NIS 18 million and an increase in the fair value of the company’s assets in the amount of NIS 64 million. The operating profit in the quarter amounted to NIS 91 million and the net profit to NIS 56 million.
The cumulative income from the sale of apartments according to the company’s share is expected to add up to NIS 18.7 billion in the future, i.e. after the completion of the multiple projects, and the gross profit from them will amount to NIS 3.7 billion.