The jump in the share of urban renewal has been translated into raising NIS 30 million

The jump in the share of urban renewal has been translated into raising NIS 30 million
The jump in the share of urban renewal has been translated into raising NIS 30 million

Ofer Nimrodi He is a veteran player in the local capital market, who knows how to take advantage of opportunities when these come to his doorstep. This time it is a community renewal training company, which belongs to the group Settlement training Under his control. After the company’s share more than doubled in less than two weeks, it reported this week raising capital of close to NIS 30 million by allocating private shares to several entities, headed by the insurance and finance company Phoenix (NIS 10 million) and Nokd Funds (NIS 12 million) and Sifra ( About NIS 6 million).

Renewal training Updated on the allocation of approximately 11% of the company’s capital at a share price of NIS 6 – reflecting a 40% discount on the market value of the share since the beginning of the week. In response, the stock of renewal training lost more than 10% in two days, but from the beginning of October until today the yield increase still amounts to close to 90%.

Upon completion of the allotment, Nokd’s share in the renewal training will be approximately 4.5%, of The Phoenix For a little over 3% and of her figure for a little over 2%. The training of the settlement will be diluted to about 78% (compared to about 87% today) and the share of Ofer Nimrodi, the director of the training of the settlement and chairman of the renewal training, will be reduced by a fraction of a percent and will stand at a little less than 2.5%.

Reflecting the madness in the field of residence

Since the company’s board of directors (formerly Hachshara Yishuv Energy) decided to enter into activities in the field of urban renewal in April 2016, Hachshara Shares has completed a 6-fold jump in value (approximately 500%), so that it reflects the company’s current value of NIS 360 million.

Like most small stocks in Tel Aviv, trading in renewal training is characterized by relatively small trading cycles, which usually reach several hundred thousand shekels a day.

The value of the controlling owner, Hachsharat Yishuv, which is also mainly engaged in real estate, stands at NIS 1.4 billion, after its share climbed 45% since the beginning of the year and completed a 110% climb from the low level recorded in March 2020 at the height of the crisis.

The recent jumps presented by Hachshara Renewal reflect the madness surrounding the field of housing in Israel, and they came against the background of an update published by the company regarding progress regarding its large-scale project in Kiryat Yam, near Haifa.

According to the update, the Haifa District Urban Renewal Subcommittee “decided to approve the urban renewal plan submitted by the Kiryat Yam Municipality and the company.”

This is a project that is expected to include the construction of 1,450 apartments instead of the current 22 apartments, in the “permanent army complex” in western Kiryat Yam, on an area of ​​about 48 dunams, which will also include employment, commercial, public facilities and open spaces.

Six “very substantial” projects

In its financial statements for the summary of the first half of the year, Hachshara Renewal presented six urban renewal projects that it defined as “very substantial,” all in planning status – in Tel Aviv, Holon and Rishon Lezion – which are expected to include about 600 apartments, of which about 400 for marketing.

At the present stage, Hachshara Renewal is still not generating income, accumulating losses approaching NIS 50 million in three and a half years (from 2017 to the first half of 2021) and its equity deficit reaches NIS 12 million.

Ofer Nimrodi, CEO of Hachsharat Yishuv, said, “About two years ago, we defined a strategy for Hachshara Yishuv, with one of its most important pillars becoming a leading player in the field of residential development, with an emphasis on urban renewal activity in Israel. We are implementing this strategy with a backlog of thousands of housing units to be implemented in the coming years. “

 
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