Oranim Real Estate Completes $160 Million Bond Offering for Luxury Senior Living Project

Oranim al Hayam, a subsidiary of the Oranim Group controlled by Menachem Oren, has successfully completed its first bond offering on the Tel Aviv Stock Exchange, raising NIS 600 million (approximately $160 million). This significant financial move aims to refinance debt and settle financial obligations with banking corporations, coinciding with the initial occupancy phase of the company's flagship project.

The bond series, designated Aleph, carries a 4% annual interest rate, indexed to inflation, and is secured by a lien on the company's senior living and commercial center project in Rishon Lezion. The offering was led by Barclays Capital Underwriters and Discount Capital Underwriting, with legal counsel provided by Ardinst Ben Nathan Toledano & Co. and Lichtenshtein, Levy, Ben Shitrit & Co.

The "Oranim al Hayam" project, marketed as "RESORT LIVING," is situated on the beachfront in Rishon Lezion and is designed for individuals aged 60 and above, offering a high-standard, hotel-like living experience. The complex comprises 270 senior housing units across two buildings, a nursing care facility, and parking. Additionally, approximately 4,950 square meters of commercial space are located on the ground floor along the beach promenade, forming part of the collateral for the bond issuance.

This bond issuance allows Oranim to transition from debt financing for project development to capital market funding, establishing a new financing framework as the project begins operations and occupancy. The successful NIS 600 million raise through a special purpose vehicle holding a single major project is particularly noteworthy for the Oranim Group.

Shira Oren Nachmias, Deputy CEO of the Oranim Group, expressed satisfaction with the positive response, viewing the successful fundraising as a significant vote of confidence from institutional investors in the management team and strategy. She highlighted the project's unique luxury offering for seniors and its exceptional standard of living in Israel.

The Oranim Group, founded in 1978 and co-managed by Menachem Oren and Shira Oren Nachmias, has a history of luxury projects in Israel and abroad, including the Royal Beach Towers in Tel Aviv and projects in London. This bond offering marks a significant entry into the local bond market for Oranim, providing an additional funding source.