Rent It Buys 30 Jerusalem Apartments for $17 Million, Targets Haredi Market

Rent It, a residential REIT, has acquired 30 apartments in Jerusalem's Neve Yaakov neighborhood for approximately NIS 63.2 million (about $17 million USD). The purchase, averaging NIS 2.1 million per unit, is part of the "Oranim" project by Beit Yeroshalmi BY and marks Rent It's strategic entry into the long-term rental market catering to the Haredi (ultra-Orthodox) community.

As part of the deal, Beit Yeroshalmi will invest NIS 7.9 million in Rent It, receiving shares equivalent to about 2.14% of the company's equity post-investment. This dual transaction makes Beit Yeroshalmi both a seller and a shareholder in Rent It, while also retaining involvement in the project's marketing and leasing. The acquired apartments represent nearly all of the remaining units in the 146-unit Oranim project, which is nearing completion and expected to be delivered soon. The project also includes a commercial center and is located near public transportation.

Rent It's focus on the Haredi sector is driven by demographic trends, with the Haredi population projected to grow significantly in the coming decades, increasing demand for housing in communities with suitable infrastructure. Neve Yaakov, with its large Haredi population and existing community services, fits Rent It's criteria for this expansion.

This Jerusalem acquisition follows Rent It's recent purchases of projects in Ashdod and Hadera, totaling over NIS 310 million in recent transactions. The company, founded in early 2022, manages approximately 800 housing units across Israel and has assets valued at around NIS 1.15 billion. The Jerusalem deal expands its geographic reach to the capital for the first time.