Eran Azran, themarker.com
The Helman-Aldubi Municipal Renewal Fund, which completed its first round of NIS 50 million in August, announced an investment in loans for three Tel Aviv urban renewal projects - totaling NIS 25 million. At the same time, the fund has announced a new round of funding of up to NIS 70 million.
Helman-Aldubi Urban Renewal, managed by CEO Manny Ben Maor and Chairman Chen Levy, provides loans to entrepreneurs in the Tama 38/1 projects - building of buildings against the addition of housing units, and Tama 38/2 - eviction projects - Construction. Established in collaboration with the Dibragon Group, the foundation provides credit for projects with building permits and entrepreneurs with experience in urban renewal, while receiving collateral.
His first project was to provide credit to George Elliott Street in Tel Aviv, including the construction of 5 housing units in addition to the 6 existing housing units in the building. The total cost of implementing the Tama project is about NIS 22 million, and the fund will give the entrepreneur credit of NIS 15.5 million for a period of 24 months.
The second project, on Mosir Street in Tel Aviv, includes the construction of 28 new housing units, including 12 apartments for the developer and the rest for existing apartment owners. The cost of the project, including the demolition of the existing building and new construction, is about NIS 50 million. The fund will provide the entrepreneur with credit of NIS 6 million for a period of 24 months.
The third project, on Judea Maccabi Street in the Old North of Tel Aviv, includes the construction of 26 housing units, of which 11 housing units and one store for the developer. This is a demolition and rebuilding project with a total cost of about NIS 46 million. The fund will provide NIS 3.5 million in credit for a period of 24 months.
According to the fund's prospectus, the minimum investment amount for investors from the public is NIS 150,000. The fund is a shekel, non-marketable and its participation units are offered to the public according to a prospectus. The fund aims to distribute a semi-annual coupon to investors at least 12 months from each investor's investment. The fund charges a management fee of 1.75%, as well as a 20% success fee, with profits above 7.5%.
According to Noam Bracha, CEO of Helman-Aldubi Investment Funds : "The area of urban renewal has tremendous potential for both the authorities, the developers and the apartment owners themselves, but so far the threshold for entry into the field has been high. For investors it was a large investment. The fund provides a solution that allows exposure to the area without leverage and building a diverse portfolio. "