Rent It Buys 30 Jerusalem Apartments for $17 Million

Rent It - Residential REIT has signed an agreement to purchase 30 housing units in the "Oranim" project in the Neve Yaakov neighborhood of Jerusalem for approximately NIS 63.2 million (about $17 million). The deal also includes an investment agreement where "Beit Yerushalmi BY" will invest NIS 7.9 million in Rent It, receiving approximately 2.14% of the company's shares in return.

The acquired apartments are intended for long-term rental and are part of a residential project for the ultra-Orthodox sector being built by Beit Yerushalmi BY. The "Oranim" project comprises three residential buildings with 146 units, along with commercial spaces, kindergartens, parking, and storage. The project is nearing completion and is expected to be delivered in the coming months.

This transaction represents the last remaining inventory in the project, with only two units left. Beit Yerushalmi BY has now fully marketed and sold the entire project, several months before occupancy.

The "Oranim" project features 11-story buildings above a commercial floor, located near public transportation and the new light rail line. It includes a 1,500 square meter neighborhood commercial center, and a Shufersal supermarket branch is set to open there.

Rent It's purchase includes 24 four-room apartments and 6 three-room apartments, totaling approximately 2,800 square meters, along with 25 parking spaces. Beit Yerushalmi will be responsible for the marketing and long-term leasing.

Rent It CEO Sharon Toussia-Cohen stated that the company aims to operate within the ultra-Orthodox sector, citing its rapid growth and significant demand for housing. He noted that Neve Yaakov meets the criteria for housing demand among the ultra-Orthodox.

Avishai Mairovitz, VP of Business Development at Beit Yerushalmi BY, expressed confidence in the group's planning and the project's location, highlighting the partnership with Rent It as ensuring the complex will be a desirable location.