After months of stagnation, three large income producing real estate deals have been completed in Israel in less than a week: Timora Fund, which is engaged in purchasing, enhancing and managing properties, has announced that it is buying two buildings in the northern industrial zone of Lod for NIS 131.5 million. The properties are being brought from REIT 1 (TASE: RIT1). This is the third major deal in Israel's income producing real estate sector in recent days after a huge deal in the Ramat Gan Diamond Exchange district last week and the purchase of half a Tel Aviv building by Migdal Insurance and Financial Holdings (TASE: MGDL).
Yesterday Timora Fund announced that it recently signed an agreement, in which it will buy the full rights in two buildings - industrial buildings at 4 and 6 Hamelacha Street. In the buildings are, among other things, the offices of the Lod Municipality Community Centers Co. The properties span 16,200 square meters on a 7.2 dunam (1.8 acres) lot. The properties also include about 300 parking spaces, most of which is underground parking.
The deal reflects about NIS 6,865 per square meter and about NIS 70,000 per parking space. The average lease in the two buildings is about NIS 47 per square meter. Lod's northern industrial zone, in which the two buildings are located, has buildings for office, industrial and logistical use with tenants from the third sector (social organizations), as well as courier companies and tech firms.
Timora Fund, managed by co-CEOS Dudy Najmy and Adv. Guy Shaya focuses on purchasing, enhancing, and managing office, industrial and logistical properties. Former CEO of Industrial Buildings, Jerusalem Economy and Azorim Properties Adv. Oded Shamir serves as Timora Fund's chairperson. He has also served as chairperson of Netivei Israel National Transport Infrastructure Co. Following the latest deal, Timora Fund said that it plans building a real estate portfolio over the coming years that is worth NIS 1.5 billion.
Timora Fund co-CEOs Najmy and Shaya said, "Lod's northern industrial zone enjoys large demand that is expected to rise in the coming years due to its unique location and surrounding conditions. We believe in our ability to enhance Timora's properties in accordance with the Fund's strategy."
Almost a year ago, Timora Fund purchased Corex House in Ra'anana for NIS 110 million. The Fund was established at the start of 2022, after raising NIS 250 million, led by Clal Insurance, which invested NIS 200 million. Last September, the Fund completed raising NIS 450 million.
Published by Globes, Israel business news - en.globes.co.il - on May 29, 2023.
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