Bareket and Shlomo Insurance Finance 62 Apartments in Tel Aviv
Bareket and Shlomo Insurance are providing up to 325 million shekels in financing for two new residential projects in Tel Aviv's Neve Avivim, featuring 62 apartments.
Two new residential projects with a total estimated value of roughly 475 million shekels are underway in the Neve Avivim neighborhood of northern Tel Aviv. The financing firm Bareket, led by CEO Adi Gazit, has entered into financing agreements to construct two 11-story buildings comprising a total of 62 housing units and commercial spaces. As part of the transaction, the company, in collaboration with Shlomo Insurance, will provide loan frameworks and guarantees totaling up to approximately 325 million shekels.
The projects are situated at the corner of Isaac Stern and Yehuda Amichai streets, an area characterized by residential development and close proximity to academic institutions, commercial hubs, and parks. The two buildings will be constructed by the Eshkol Group, owned by Dror and Shai Avrahami, via its execution arm Eshkol Projects.
Two Construction Models
Although the two buildings will be erected simultaneously and share a common underground parking garage, they operate under distinct frameworks. The first is advanced by a group of historical landowners managed by Eshkol Residential, while the second follows an entrepreneurial model involving a combination deal and construction services with the company.
In total, the two projects will encompass 62 apartments and roughly 216 square meters of commercial space above the shared parking facility. Under the financing agreements, Bareket will provide loan frameworks totaling approximately 145 million shekels to the landowner group and the Eshkol Group. Together with Shlomo Insurance, the loan and guarantee frameworks for establishing both projects will reach up to approximately 325 million shekels.
Shlomo Insurance will participate in financing the entrepreneurial transaction by issuing guarantees to the landowners and sales policies to apartment buyers. Bareket's financing frameworks will be utilized by the landowners, group members, and the developer to construct the projects, backed by a first-lien mortgage on the land and additional collateral.
Adi Gazit, CEO of Bareket, stated: "These financing transactions demonstrate Bareket's ability to support complex deals. We continue to expand our company operations and work alongside and in cooperation with developers and landowners in residential projects across the country, adapting to the industry's needs with maximum flexibility.»
Additional Financing in Northern Tel Aviv
This current deal joins another recent financing activity by Bareket in northern Tel Aviv. In January, the company reported signing two agreements to provide bridge loan frameworks amounting to roughly 540 million shekels to two different landowner groups, led by the Hagag Group, regarding real estate on Einstein Street in the Ramat Aviv neighborhood.
Those projects plan for six residential buildings containing 515 apartments, a commercial center spanning about 11,400 square meters, a public building covering approximately 3,950 square meters, and an underground parking garage with 957 parking spaces. The total value of those projects is estimated at around 4 billion shekels.
Bareket is a public financing company specializing in real estate project financing and transactions, controlled by Roni Biram, Chairman of the Company, Gil Deutsch, and CEO Adi Gazit.
