Migdal Insurance acquires 50% of three Prashkovsky projects for 700 million shekels
Migdal Insurance is acquiring a 50% stake in three major residential projects from the Prashkovsky company for 700 million shekels. The deal encompasses 800 housing units intended for rental.
The insurance company Migdal is acquiring 50% of three large projects from the Prashkovsky company for 700 million shekels. Prashkovsky reported the deal to the stock exchange. Negotiations for the transaction were revealed on July 5 in Calcalist.
The three projects are located in the Ben Shemen neighborhood in Lod, in Be'er Ya'akov, and in Ganei Azar in Ramat Gan, and include 800 housing units for rent. Prashkovsky will provide full management services for each housing unit in the projects, and the expected cash flow for the company from the deal is 156 million shekels. The company recognized a profit of 111 million shekels on the deal.
Breakdown of Migdal's investment:
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Lod project: 301 million shekels (286 housing units and 1,800 square meters of commercial space).
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Be'er Ya'akov project: 330 million shekels (298 housing units).
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Ramat Gan project: 66 million shekels (195 housing units and 700 square meters of commercial space).
The project in Lod is completed, Be'er Ya'akov is in advanced stages of construction, and Ganei Azar is only in the land preparation stage, which explains the relatively low price. Migdal will also participate in financing construction costs with an additional amount of approximately 160 million shekels.
Migdal Insurance, whose deal was led by investment manager Erez Magdali, holds the largest real estate portfolio among institutional investors in Israel. In the last two years, the company has formulated a strategy to expand its activity in the residential rental sector. The company's investment division previously stated that the industry slowdown and rising interest rates have created long-term investment opportunities in quality assets in high-demand areas.
Even before the current deal, Migdal Insurance held partnerships in projects including 1,285 apartments, in which it invested about 600 million shekels. In addition, the company invested 40 million shekels in the Rent It fund, which operates in the residential rental sector.
