Or-Yehuda, Ramleh, Migdal Haemek

RENEWAL INVESTMENT OPPORTUNITY

What is Urban Renewal?

Urban renewal in Israel is a process that focuses on improving older neighborhoods by making significant changes. .This typically involves demolishing old and outdated buildings and replacing them with new structures that are up to date and meet current standards. The aim of the urban renewal is to enhance the quality of life for residents and increase the availability of housing in the area.

To initiate an Urban renewal project, the state designates specific compounds or neighborhoods for redevelopment. For the process to proceed, at least two-thirds (67%) of the tenants must agree to the renewal plan and choose a developer. A recent amendment to the Urban Renewal Law has reduced the required agreement from 80% to 66% in order to streamline decision-making. Additionally, tenants who have committed construction offenses are not included in the majority count, many times allowing for a consent rate as low as 50%.

An agreement has been entered into with current homeowners on a development site in Or-Yehuda, Israel. This area has been approved for rezoning and provides the air rights to construct an estimated 2,550 residential units.

The project will be a joint venture with Hachsharat Hayishuv , one Israel's leading Publicly Traded Real Estate Developers with an emphasis on large projects in larger cities.

Or-Yehuda  is in close proximity to Tel Aviv. It’s a very desirable neighborhood. Or-Yehuda is becoming a very popular neighborhood for Israeli Professionals with its close proximity to Central Tel Aviv and Ben Gurion Airport.

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CURRENT PLAN

The current plan includes around 2550 units, which will average roughly 100 square meters in size. Based on today's values the average selling price for new construction in Or-Yehuda is 2.56 Million Israeli Shekel(est $737,000 USD) according to the Sapir Group

PRICING

• Or Yehuda –starting from $330 000 per apartment

• Ramleh –starting from $300 000 per apartment

• Migdal Haemek- starting from $150 000 per apartment

Estimated Timeline

•  12/2023-Receive The Re-zoned TBA which creates potential liquidity,

•  6/2026-Receive Building Permits which increases value and liquidity options

•  1/2028-Completed Units(keys) Highest Return base on proforma = 473,000,000 ILS

INVESTMENT DETAILS

• Apartment size will be 100 square meter each, and all will include a balcony and private parking space, with a modern look

• To participate in this exciting opportunity, the minimum investment required is $ 300 000 USD. This investment grants you entry into the project and allows you to benefit from the potential returns and profits it offers. The $ 300 000 USD will potentially be equal to 1 apartment in the complex.

EXIT OPPORTUNITIES

There are multiple exit opportunities for investors to collect their returns on investment

1. Exit Opportunity 1: Estimated June 2024

   • At this stage, the project is expected to receive the taba zoning change, unlocking its full potential for development

   • Investors will have the opportunity to exit the investment and receive a 20% return on their initial investment

2. Exit Opportunity 2: Estimated June 2026

   • By this stage, the project is projected to have obtained all necessary building permits, a significant milestone in the development process

   • Investors can choose to exit at this point and receive a 65% return on their initial investment

3. Final Opportunity 3: Estimated June 2028

   • At this stage, the project will be completed, and investors will receive the keys to a brand new luxury apartment.

   • The estimated worth of a new 100 square meter completed apartment (as of May 2023 as per the Shamir group evaluation) is $700 000 USD, providing investors with a remarkable 133% return on their initial investment.

Regardless of the projects progress, the Investor/Lender’s Loan agreement Term is for a minimum of 36 months with a fixed rate of 12% annual interest based on the amount invested.

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