The Israeli real estate market has experienced a significant slowdown in recent months due to macro conditions and high interest rates, but it appears that in areas of strong demand, institutional players and prominent businesspeople are recognizing opportunities.
Last night (Sunday), a huge deal was signed that was unusual in its scope in the Jerusalem market: The REIT fund owned by businessman Tzachi Abu made a concentrated purchase of 50 housing units in the flagship 'Rafa Triple' project of the development company 'Bingo Real Estate', located in the sought-after Romema neighborhood.
The total scope of the deal is 156 million shekels.
Industry sources note that this is a realistic market price of NIS 60,000 per square meter, excluding VAT, and is consistent with the mix of apartments in the project, which is characterized by housing units for young couples tailored to the exact demands in the area.
The real estate industry notes that an acquisition of this magnitude, at the current timing, is no small matter. The Abu Group is known for its investment strategy, which carefully examines premium areas with high improvement potential.
The purchase from Bingo Real Estate is in fact a clear expression of confidence in both the strength of the residential market in Jerusalem and the execution and planning capabilities of the entrepreneurial company, which has a planning pipeline of thousands of housing units throughout the capital.
The negotiations and leadership of the transaction were managed on the part of Bingo Real Estate by the company's management, Moshe Brin and Haim Lape, together with the company's attorney, Yair Shopel, who worked in close cooperation with the CEO of the Abu Family REIT Group, Chaya Kind.
At the signing of the deal. Photo: Courtesy
David Brin, chairman of Bingo Real Estate, commented on the signing and said: "Executing a deal of this magnitude these days proves that quality projects in strategic locations maintain their value and their level of demand. We are proud to sign the deal with businessman Tzachi Abu, a partner in the journey who knows how to identify quality and vision. We thank him for managing a professional, efficient and trust-based process. Our eyes are now set on the next projects to promote the thousands of additional housing units that the company is initiating in Jerusalem.".
Businessman Tzachi Abu said upon signing the deal: "We are great believers in the Jerusalem market. The 'Rafa Triple' project presents an exceptionally high design and performance standard, and its location in the heart of Jerusalem makes it a strategic asset. We chose to invest in 'Bingo Real Estate' after examining the quality of the company and the project in depth, and I am convinced that this is an excellent deal for us and another step in strengthening the fund's portfolio.".
