Magorit buys Madrami residential building in Ashkelon for NIS 91 million – real estate

Harit Foundation

Magorit
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Which operates in the residential apartment market announces the purchase of a residential building in the Barnea neighborhood of Ashkelon for NIS 91 million from Y.H.

Damari
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At the same time, YH Damari will invest in Magorit in exchange for 2.66 million shares with a market value of about NIS 15 million.

In the agreement between the parties, the companies will price the share at a price 32% higher than the current price in the market and at a price of NIS 7.5 per share, so that Damri will invest NIS 20 million in Magorit. Due to the dilution of the share of investors and as part of the declines today in Israel and around the world, the shares of the two companies are now falling by about 3.7% in trading on the stock exchange.

According to the company’s announcement, this is the first collaboration between the two companies, with the purchased building being part of Phase 2 of the Damari project in the Barnea neighborhood, and including 56 apartments with a mix of 4-5 rooms and special 16-story apartments in Ashkelon. Towards the end of 2021.

Last November, the Harit Residential Fund signed three deals in Bat Yam, Jerusalem and Ramat Hasharon for a total of NIS 230 million, and Magorit’s acquisitions in 2020 will be about NIS 1.2 billion, in which a total of 560 housing units were purchased.

Yigal Damari, CEO and controlling shareholder of the Y.H. Damari Group: “Y.H. Damari believes in the residential housing market in Israel and therefore thinks that her investment in Magorit, as a long-term investment in the residential and rental market in Israel, will increase nicely. We hope that the relationship between Damari and Magorit will also crystallize into further deals in the future. ”

Mati Dov, CEO of Magorit, commented: “We are very happy for the cooperation between us and Y.H. Damari and are happy that Damari has joined as an investor in the company. We intend to work to deepen the connection and cooperation in the future. ”

Since the beginning of the year, the Magorit share has fallen by about 26% and is now trading at a price of about NIS 1.5 and a half, while the Demari share has risen by about 50%.