Afek Capital Sells Ra'anana Land for $53 Million Profit

Afek Capital is selling land in Ra'anana, which it acquired through a Israel Land Authority tender in April 2025, for approximately NIS 194.2 million. Although this sale price is about NIS 30 million higher than what Afek Capital and its partner, Plock Holdings, paid for the land just a year ago (NIS 162.5 million, including development costs), Afek Capital expects to retain only about NIS 4 million in profit from the transaction. Afek Capital held a 75% stake in the project, which was slated to include 221 housing units, with 177 designated for the state-subsidized "Price Per Target" program (also known as "Apartment for Discount") and 44 for the free market, along with 1,200 square meters of commercial space.

Afek Capital announced to the stock exchange that it has entered into an agreement to sell its full rights in the land to Shmuel Baruch Investments, a private company owned by the public company Shmuel Baruch Entrepreneurship and Construction. The sale is expected to generate approximately NIS 47 million in free cash flow for Afek Capital after repaying existing land financing, which the company stated will help reduce its debt and leverage, thereby strengthening its financial flexibility.

Despite the significant increase in the sale price compared to the acquisition cost, Afek Capital's projected capital gains tax before tax is approximately NIS 5 million, meaning its share of the profit will be around NIS 4 million. Afek Capital CEO and Chairman, Afek Shaked, stated that the deal reflects the company's strategy of active capital and asset management, adapting capital allocation to project progress and potential in the current real estate market. He added that the opportunity to realize the land at a price reflecting considerable value appreciation prompted the sale.

Devora Baruch, CEO of Shmuel Baruch Entrepreneurship and Construction, views Ra'anana as a strategic location with stable demand and significant growth potential. She noted that in a period with few Israel Land Authority tenders, the company is proactively seeking business opportunities to expand its land reserves. She highlighted that 80% of the units on this land are designated for "Price Per Target" winners, which reduces risk and increases certainty in the current market.