Abu Family Buys 50 Units in Azorim Netanya Project for 120 Million Shekels
Abu Family Residential has agreed to purchase 50 housing units in Azorim's Netanya project for 120 million shekels, highlighting a broader trend of REITs acquiring unsold inventory at a discount amid a residential slowdown.
Rental real estate investment trusts (REITs) continue to capitalize on opportunities presented by the slowdown in the residential real estate sector. Following deals by Megurit and Rent It, which recently acquired dozens of apartments in projects where Almog and Azorim struggled to sell, Abu Family Residential is now purchasing 50 housing units in the N Weizmann project by Azorim in Netanya for 120 million shekels.
Bulk Purchases and Market Dynamics
Abu Family will pay 15% near the signing date, with the remainder of approximately 100 million shekels due near the delivery of the units at the end of May. This urban renewal project, where Azorim began constructing 292 units in 2022—including 211 for marketing—is expected to be completed by the first quarter of 2027. This ensures the apartments are ready for occupancy upon transfer, avoiding financing gaps.
Such transactions create value for both sides, both for developers and for REITs. For developers, selling batches of apartments in mature projects allows for accelerated cash flow, freed-up capital, and reduced financing and marketing costs, said Value Base investment bank real estate analyst Tom Peingold.
Broader Trends in the Housing Sector
Azorim's sales pace has lagged, reaching only 60% by the end of August, with 135 units sold and 86 awaiting buyers. The transaction reflects an average price of 2.4 million shekels per unit, including VAT, representing a discount of about 20% compared to previous deals in the same project.
