Asa Sasson, themarker.com
Tower Company and Azur Company Signed a NIS 600 million credit agreement. As part of the agreement, the tower will provide senior debt tower for Reith Azores Living (a subsidiary of Azorim), which is engaged in the construction and operation of long-term rental housing complexes. The funding will be allocated to projects that the company has won in the tenders of the government company "Apartment for Rent": Rishon Lezion in the Rakefet neighborhood and Or Yehuda in the Beit Park neighborhood.
Migdal will provide NIS 600 million in financing for both projects and accompany the projects during the construction period and the operating period. The funding will be provided for a long term for a period of ten years from the date of construction. This is a credit transaction backed by collateral on the assets and rights of the two projects and under the responsibility of Azorim, during the construction period. This is the first collaboration between Migdal and areas of credit.
The LIVING Rishon Lezion project (NIS 225 million in funding) will include two 24-story towers, each with 108 apartments, all for long-term rental. Expectations for population are about two years from now. The LIVING House project in the park (NIS 376 million in funding) in the Boar Yehuda neighborhood, near the Savyon junction, includes seven ten-story buildings each, which will include 364 apartments for long-term rental. Projects will also include a gym, classroom, event room, study room and more. The project in Or Yehuda is under construction and the population is expected in the summer of 2021. The areas have a long-term active and fully populated rental project in Ashdod, which includes 112 housing units, and another future project in Bat Yam.
Hershey Friedman, controlling area Photo: Moti Millrod
Ruth Levy, Migdal Business Credit Manager, said: "As part of Migdal's investment activities, the non-negotiable credit area is a significant tier. This deal with Azorim is part of an overall strategy to increase the non-negotiable credit portfolio in Israel and diversify in projects with cash flow. Stable and strong for years to come. Migdal is currently working extensively on initiating real estate financing deals in Israel in a variety of areas such as rental real estate, rental housing, sheltered housing and hotels. "
Eran Anavim, CFO of Azorim: "We are delighted to cooperate with Migdal and thank them for expressing their confidence in our rental housing activities. This is a long-term and significant funding that reflects our vision for the field. Azorim aims to continue to expand its operations in the field, while also reflecting the company's relative advantages in project planning and project development and in building quality residential communities. "