Afi Capital Sells Ra'anana Land for NIS 200 Million Profitably
Afi Capital Real Estate, led by Afi Shakedi, has sold a plot of land in Ra'anana for approximately NIS 200 million, realizing a profit despite claims of falling land prices. The buyer is Shmuel Baruch Investments Ltd., managed by Dvora Baruch.
The land parcel includes rights for the construction of 221 housing units and about 1,200 square meters of commercial space. Of the residential units, 177 are designated for the "Target Price" program, and 44 for the open market. Shmuel Baruch Investments will pay Afi Capital NIS 193.5 million for the land and development costs, plus reimburse about NIS 700,000 in expenses, bringing the total expected proceeds for Afi Capital to approximately NIS 194.2 million.
Afi Capital had acquired the land from the Israel Land Authority (ILA) in April 2023 for about NIS 163 million, including development costs. The company stated the profit from this sale is marginal and primarily aimed at reducing leverage. This transaction occurs amidst a reported 4.9% decrease in the general land price index in 2025 compared to 2024, with significant drops in prices for single-family home plots (18.1%) and a smaller decrease for multi-family housing plots (3.9%). The article notes these figures pertain to ILA-marketed lands.
Afi Capital estimates a pre-tax profit of around NIS 4 million from the deal. After repaying existing financing, the company expects to have about NIS 47 million in free cash flow, which will strengthen its financial flexibility by reducing debt and leverage. The land is located in the Ra'anana West plan, a large development area west of Park Road.
Afi Shakedi, Chairman and CEO of Afi Capital Real Estate, described the sale as reflecting the company's active capital management strategy, adapting to market challenges. Dvora Baruch, CEO of Shmuel Baruch Entrepreneurship and Construction, called Ra'anana a strategic target with stable demand and growth potential, highlighting that 80% of the units are for "Target Price" program recipients, which reduces risk. This is the second transaction between the two companies.
