US residential real estate company Flow, controlled by Adam Neumann and US venture capital firm Andreessen Horowitz, has been allocated 30% of the shares of Israeli income producing real estate company Canada Global (TASE: CNGL), controlled by Israel Canada (TASE: ISCN) controlling shareholders Asaf Touchmair and Barak Rosen.
Neumann, who founded co-working space company WeWork, which collapsed in August 2023, continues to invest in a range of areas. Flow describes itself as a "residential real estate brand which is changing the future of housing, although there are not many details about the venture beyond reports on US media websites.
Flow will receive 25% of the shares of Canada Global for NIS 85.1 million at NIS 6.01 per share, a 22% premium on the market price before trade began this morning). Flow is also buying another 4% stake at the same share price for NIS 13.5 million. Also investing in Canada Global is cybersecurity company WIZ cofounder and CEO Assaf Rappaport, who will buy shares for NIS 3.4 million.
The deal reflects a company valuation of NIS 252 million, before money, for Canada Global, and NIS 340 million, after money, double the market cap when the share began trading this morning. Canada Global chairman and CEO Asaf Touchmair will continue as CEO.
Portfolio of over 4,000 apartments in the US and Saudi Arabia
Flow was founded by Neumann in 2022 with a private investment of $350 million, together with another $350 million from Andreessen Horowitz. Flow describes itself as, "Changing the living experience as a property owner, operator and innovator of integrative technology. By prioritizing high-class buildings, advanced operations and a vibrant community, Flow not only provides apartments, it fosters connected lives, where individuals feel valued, supported and empowered to realize their full potential." The company has a portfolio of over 4,000 apartments and high-end residential buildings (Class A), in four cities in the US and Saudi Arabia.
Neumann said, "The investment in Canada Global consolidates the strategic cooperation between it and Flow in order to create and develop world class real estate projects outside of Israel, starting with the US."
Assaf Touchmair and Barak Rosen said, "We plan to apply our existing capabilities, bring extensive experience gained over 30 years, alongside creativity, planning, marketing and opportunity-finding capabilities, and develop Canada Global as a brand in its own right, which will be the real estate arm of the group outside of Israel."
Published by Globes, Israel business news - en.globes.co.il - on September 29, 2024.
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