The training of the settlement, under the direction of Ofer Nimrodi, accelerates its activity in the field of housing. Hachsharat Yishuv reported yesterday that it has signed an agreement with Phoenix Insurance Company to finance the construction of a project on De Haz Street in Tel Aviv, and today Hachsharat Yishuv updates today that it has signed a strategic cooperation agreement with Menora Insurance Company, in which Menora will invest, along with Hachshara Yishuv Urban Renewal , NIS 100 million in equity (60% of the partnership capital) to promote 4 residential projects that the community is training to promote and is expected to begin construction in the next two years. For this purpose, the community training will provide 40% of the partnership’s capital, up to a total of NIS 66 million, so that in total the partnership owned by the community training and Menora will provide a total equity of up to NIS 166 million for the said projects.
The four projects in the framework of the cooperation are: Henkin in Holon in which 130 housing units will be built, Bavli project in Tel Aviv in which 55 housing units will be built, Phase A in the “Permanent Army Housing” project in Kiryat Yam in which 268 housing units will be built (out of 1,450 housing units The project), and Phase A of the “Ben-Gurion” project in Ramla, as part of which 270 housing units will be built (out of 3,082 housing units in all phases of the project).
In total, as part of the four projects, the partnership is expected to build 723 housing units, of which 577 are housing units for sale. The settlement training estimates that the income from the sale of the housing units will amount to NIS 1 billion (excluding VAT), and estimates the costs for the construction of these projects at NIS 835 million.
Various mechanisms have been established between the parties, including conditions for the provision of equity for projects, the manner in which projects are managed, the manner in which material decisions are made, and more. It was also agreed that the payment cascade of the projects, based on various working assumptions, would reflect the distribution of profits according to a ratio of about 70% for the training of the settlement, and about 30% for Menorah. Settlement training Urban renewal is entitled to an element of initiation fees from the profits of each project, as well as to success fees based on the achievement of profitability targets for each and every one of the projects.
On behalf of Hachshara Yishuv, the deal was led by Ofer Nimrodi, CEO of the company, and Oded Seter, VP of Finance, Investments and Business Development.
On behalf of Menora-Mivtachim, the transaction was led by Nir Moroz, Chief Investment Officer, Uzi Levy, CEO of Menora-Mivtachim Real Estate and Shoham Waldman, Real Estate Manager in the Investment Division.
The settlement’s training was represented in the transaction by Adv. Niv Sivan from the Herzog firm, and Adv. Ilanit Landsman-Yogev. Menora-Mivtachim was represented in the transaction by Adv. Orit Israeli and Adv. Little Efrati from the Fischer firm. Shekel & Co. and EY advised the parties.
Settlement training Works in the field of initiating and renting income-producing properties in Israel and Poland – commercial areas, offices and logistics parks; As well as initiating residential projects in Poland and urban renewal in Israel. The CEO of the company is Mr. Ofer Nimrodi.
Ofer Nimrodi, Director General of Hachshara Yishuv: “We are proud and happy about the strategic cooperation with Menora and see this as a significant expression of trust from a leading body in the capital market. The deal is another important step in establishing the status of training the community as a leading company in Israel in the field of urban renewal. The training of the settlement is in full swing in the field of income-producing properties and in the field of residential development with thousands of housing units in areas of demand, which are in significant stages of promotion. Menora will invest approximately NIS 100 million in equity directly in 4 projects that we have promoted in recent years and which we are expected to begin building in the next two years. The strategic cooperation will support the trend of comprehensive expansion of the settlement’s training in the field of housing. ”
Uzi Levy, CEO of Menora Mivtachim Real Estate: “We welcome the cooperation with the Yishuv Training Group, which is a leading body with extensive knowledge and experience in the field of urban renewal. The field of residence in Israel is one that enjoys high demand and strong growth forecasts for the future. Urban renewal is in fact the largest supply of land and housing units in the heart of areas of demand. This investment joins many other investments in the field of real estate that the company has made, in order to diversify the investment portfolio and generate an excess return for the group’s members and policyholders. I would like to thank Shoham Waldman, Director of Real Estate Investments, for leading the investment in a professional and thorough manner. “