Real Estate Firm Sells Ra'anana Land for $53 Million Profit

Real estate company Afi Capital has sold a plot of land in Ra'anana, acquired just last year, for approximately NIS 200 million (around $53 million USD), generating a profit.

The buyer is Shmuel Baruch Investments, 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, aimed at making housing more affordable, and 44 for the free market.

Afi Capital purchased the land from the Israel Land Authority (ILA) in April 2023 for about NIS 163 million, including development costs. The current sale to Shmuel Baruch Investments for NIS 193.5 million, plus NIS 700,000 in reimbursed expenses, totals approximately NIS 194.2 million in proceeds for Afi Capital. The company estimates a pre-tax profit of around NIS 4 million from the transaction. After repaying existing financing, Afi Capital expects to have about NIS 47 million in free cash flow, which will help reduce its leverage and strengthen its financial flexibility.

This sale occurs despite a reported decline in land prices. According to the Central Bureau of Statistics, the general land price index fell by 4.9% in 2025 compared to 2024. Prices for dense construction land dropped 3.9%, and for single-family home plots, they fell 18.1%. The article notes that these figures pertain to ILA-marketed lands and suggests that price comparisons can be misleading.

Afi Capital CEO Afi Shaked stated the deal reflects the company's active capital management strategy, adapting to market conditions and seeking opportunities to strengthen equity and reduce leverage. Dvora Baruch, CEO of Shmuel Baruch Entrepreneurship and Construction, called Ra'anana a strategic location with stable demand and growth potential, highlighting that 80% of the units are for the "Target Price" program, reducing risk. This is the second transaction between the two companies.