Avisror family reaps huge profits after 100 million shekel apartment purchases

The disclosure at the end of the week regarding the amounts paid by the Avisror family for the project in Sde Dov became the talk of the day among developers. Many of them also purchased apartments for their family members, but it turns out that the Avisrors purchased luxury apartments, most of them on the high floors, for huge sums — over 100 million shekels.

After completing the transactions, the company is raising capital at a lower valuation than it had aimed for. It aimed to raise based on a valuation of 2.1-2.2 billion shekels — at least 15% less than the valuation it aimed for, but it offered stock options for no consideration. Ultimately, it will raise about 530 million shekels in exchange for about 21% of the shares.

From a conversation with managers of other public real estate companies, it appears that the addition of options to the offering package is what led Avisror to raise capital at the new valuation. The reason for this is the possibility of purchasing additional shares in the future — a good deal for both sides. At Avisror, they know that if the options are exercised, hundreds of millions more will flow into the company and the family members will earn quite a bit of money from the move. Regarding the options, their price was about 12% higher than the share price. If the family holds 70% of the shares, about 140 million shekels will flow to it as dividends.

Avisror is succeeding in expanding its sources of financing, thereby significantly increasing the scope of its activity. On the other hand, the company will distribute a high dividend of nearly 200 million shekels within three months — more than a third of the money it raised. On the other hand, the family members, as can be seen above, hold most of the shares and will receive quite a bit of money within three months.

According to the prospectus, Eli Avisror is expected to hold 31.32% of the company. Brothers Jacky and Yoram will hold 19.73% and 17.19%. Mordechai Avisror will hold 9.75% and the public will hold 22%. Today, Eli holds about 40% of the company, Jacky about 25%, Yoram about 22%, and Mordechai Avisror holds about 12.5% of the company.

As published here, Eli Avisror already bought a 6-room apartment in the project on the 32nd floor for 12 million shekels. Avisror bought another apartment for his daughter, 5 rooms, at a price of 7,010,000 shekels. In an interview given here by Eli Avisror in March, he estimated that housing prices would even rise gradually after the war.

Yoram Avisror also bought apartments. One of them is a 6-room apartment on the floor for 12 million shekels. Previously, brother Jacky Avisror also purchased a 6-room apartment on the 33rd floor for 12 million shekels. Inbal Oshrat Avisror Freeman purchased a 6-room apartment for 17 million shekels. The rest of the family members also bought similar apartments, with an average value of about 7 million shekels. We remind you that the company has already announced that there is no suspicion of contamination of the land on which it is building, which was also reflected in the announcement by the Ministry of Environmental Protection.