Rent It Buys 30 Jerusalem Apartments at 20% Discount

Rent It, a residential REIT, has signed an agreement to purchase 30 apartments in the "Oranim" project in Jerusalem's Neve Ya'akov neighborhood from the Beit Yeroshalmi BY group for approximately NIS 63.2 million. This price represents a 20% discount off the market value, a move facilitated by the current low volume of apartment sales by developers. The acquired units are intended for long-term rental for 20 years and are part of a larger residential project targeting the Haredi community, which includes three buildings with a total of 146 units.

In parallel, Beit Yeroshalmi BY will invest approximately NIS 7.9 million in Rent It, receiving shares equivalent to about 2.14% of the company's equity post-allocation. The "Oranim" project features three 11-story buildings above a commercial floor, situated near public transportation and the new light rail line. The complex includes mixed-use spaces, with 1,500 square meters of commercial space on the ground floor, where a Shufersal supermarket will open, alongside residential units and two apartments designated for people with disabilities.

The project is nearing completion, with deliveries expected in the coming months. The purchase by Rent It encompasses nearly all remaining units in the project, leaving only two unsold. The 30 apartments consist of 24 four-room units and 6 three-room units, totaling approximately 2,800 square meters, with 25 parking spaces included. Beit Yeroshalmi BY will manage the long-term marketing and rental of these apartments.

Neve Ya'akov is an established neighborhood in northern Jerusalem with 30,000 residents, predominantly from the Haredi sector. This acquisition follows a similar trend, with Abo Family Real Estate having purchased 50 rental units in the Romema neighborhood for the Haredi community in May.