The Marker, Adi Cohen, 01.03.2020
The residential real estate fund, Megurit Israel , on Sunday signed an agreement to purchase a 30-unit residential building in the Green Herzliya neighborhood for NIS 62 million. The building, which is expected to be handed over to the Ritz Fund in about two years, will contain 4-3 room apartments alongside garden apartments and will be leased as part of an affordable housing project for Herzliya Municipality's eligible residents, for a reduced rent for a period of 15 years.
With the current deal being signed, the Hritt Fund raises the stock of rental apartments it is building into 1,200 housing units in 18 different projects across the country. Megurit has other agreements under affordable housing projects, including the Midtown project in central Tel Aviv as well as four apartment rental projects, which she initiated in collaboration with the Manrav Group .
This is Magurit's second deal in Herzliya this year, with the two deals in the city being NIS 112 million. In addition, from the beginning of the year until now, Magurit reported additional transactions in Bnei Brak and Tel Aviv in the amount of NIS 133 million. This, after last December, announced a series of agreements for the purchase of apartments worth NIS half a billion.
Against the background of the completion of the Rite Fund's transactions in recent months is the raising of capital undertaken by the Company in November 2019. During this period, the Company issued shares amounting to NIS 414 million - in an offering in which some of the leading insurance companies and investment houses were taken over in Israel.
Maturit Dov, managing director of Gurit, said: "The unique features of the project allow us to take advantage of the relative advantages we have as a REIT specializing in residential rental, and to purchase an entire building at an attractive price in one of Israel's well-established and sought-after neighborhoods. The diversification of transactions in both acquisition and entrepreneurship in the free market and in the area of affordable housing, along with the extensive geographical retirement, creates a stable and correct portfolio of assets. "