Last night, Rothstein Real Estate, a company for the development and construction of residences, successfully completed the institutional phase of the issuance of Series I (new series), in which the company won demand in the amount of NIS 158 million, of which it chose to raise approximately NIS 158 million. NIS 100 million.
Following permit applications recorded in the offering, the institutional phase closed at an annual shekel interest rate of 3.56% – lower than the maximum interest rate offered in the tender, which stood at 4.35%.
As part of the offering, the company offered investors bonds bearing a fixed shekel interest rate, with a maturity of approximately 2.85 years, with the final maturity date being July 2025. The offering was led by IBI workers and the underwriters’ consortium – Epsilon Underwriting, Unicorn Capital And Alpha Beta IPOs.
Avishai Ben-Haim, CEO of Rothstein Real Estate: “We thank the investing public for its high response to the successful IPO, which once again expresses the expression of the capital market’s confidence in the company, its management, its business operations and its financial strength.
In exchange for the offering, it will support the continued implementation of the business plan to expand the scope of activity of the company, which currently leads the planning and construction of about 40 projects throughout the country with a total of more than 6,000 housing units, along with planning and construction of 7 projects in logistics, commerce and offices. A thousand square meters.
As of the end of 2020, the company had manufactured and marketed approximately 1,300 housing units (approximately 980 housing units, the company), of which approximately 740 housing units were sold for approximately NIS 1.2 billion. In addition, the company has land reserves in the planning of approximately 3,170 housing units, along with land rights for the construction of approximately 83,000 square meters of main commercial and office buildings (part of the company). The company expects revenues of approximately NIS 3.2 billion for the projects to be completed between the years. 2020 to 2023.
In addition, last month the Rothstein company, together with its subsidiary, the people of the city, announced that they had won a tender from Ezra and Batzron, for the construction of about 420 housing units and 960 square meters for commerce, as part of an urban renewal project on La Guardia Street in Tel Aviv. According to an initial estimate by the company, the expected revenue of the project will be approximately NIS 820 million and the expected cost of the project will amount to approximately NIS 700 million, so that the gross profitability of the project is expected to be approximately 14.6%.
Rothstein Real Estate summarized the first nine months of 2020 with revenues of approximately NIS 200 million, an increase in the gross profit margin to approximately 25.1% and a doubling of the net profit to approximately NIS 50 million. The third quarter of 2020 increased to approximately NIS 218 million and constituted approximately 23.6% of the total balance sheet, less advances from apartment buyers and liabilities to landowners. In addition, the company has a cash register, cash in limited escrow accounts, and investments intended for the repayment of bonds in the total amount of approximately NIS 146 million.