Major Real Estate Deal: Prashkovsky Sells 50% Stake to Migdal for 700 Million Shekels

Prashkovsky Investments and Construction has announced the signing of a strategic agreement with Migdal Insurance and Finance. As part of the deal, Prashkovsky will sell to Migdal 50% of its rights in three long-term rental housing assets for a total consideration of approximately 700 million shekels.

Following the move, Prashkovsky estimates that the projected cash flow from the deal will amount to approximately 156 million shekels, with the company recognizing a significant profit of about 111 million shekels. Despite transferring half of the rights to Migdal, Prashkovsky emphasizes that the company will continue to provide full management services for all housing units in the joint projects.

The deal includes three major projects in high-demand areas, totaling about 800 housing units:

1. Ben Shemen neighborhood, Lod: A project whose construction has already been completed. It includes 286 long-term rental housing units as well as commercial space of approximately 1,800 square meters. For half of the rights in this project, Migdal will pay about 301 million shekels.

2. Be'er Ya'akov: An asset currently in advanced stages of construction, which is expected to include 298 housing units intended for rent. The consideration for 50% of this project stands at approximately 330 million shekels.

3. Ganei Azar, Ramat Gan: A project based on land designated for the construction of 195 housing units (with the possibility of increasing to 215 units, subject to approval of concessions) and about 700 square meters of commercial space. For half of the rights in this project, Migdal will pay about 66 million shekels.

Yossi Prashkovsky, Chairman of the Board of Directors of Prashkovsky Investments and Construction, stated:

"The deal signed today for the inclusion of Migdal in 3 projects in the rental housing sector is an expression of confidence in the institutional rental market in Israel and constitutes another important pillar in the company's strategy to expand its activity and growth in the field. We are happy and proud of the deepening of the strategic partnership between the entities, which will allow the company to continue to lead the institutional rental market in Israel and promote additional projects in the field, while the full management of all housing units will remain with the company so that the partnership will benefit from relying on the expertise and experience that the company has accumulated in the field."

Erez Migdali, Head of the Investment Division at Migdal Insurance and Finance, added:

"The deal with Prashkovsky reflects Migdal's strategy to expand its portfolio of real investments in Israel. Entering into a partnership in the three rental housing assets allows us to ensure a stable long-term yield anchor for Migdal's clients, backed by the rigid demand in the local housing market. We view the long-term rental sector as a high-quality investment channel and are happy about the joint work with a leading development company like Prashkovsky."