Oranim Raises NIS 600 Million in Bonds for Rishon LeZion Senior Living Project

Oranim, a new senior living company, has successfully raised NIS 600 million through bond offerings to finance its 'Oranim Al Hayam' project in Rishon LeZion. The funds were secured from institutional bodies and other qualified investors.

The bonds are indexed to inflation, carry an annual interest rate of 4%, and are secured by a lien on the senior living facility and its commercial center. The capital raised will be used to repay a NIS 510 million bank loan that financed the project's construction. The company's owners, Menachem Oren and his daughter Shira, have also provided an additional NIS 250 million in debt for the project.

The project's occupancy began later than planned due to the 'Operation Iron Swords' war and a shortage of workers. It spans 51,000 square meters and comprises two buildings, seven to eight stories high, offering 270 residential units ranging up to 140 square meters. Additionally, it includes approximately 5,000 square meters of commercial space. The total estimated value of the project is NIS 928 million.

Oranim projects that 10% of the facility will be occupied by the end of 2026, with occupancy reaching 25% by the end of 2027 and 45% by the end of 2028. The company anticipates cash flow from resident deposits to be NIS 152 million in the upcoming year and NIS 101 million in the year thereafter.