Efi Capital Sells Ra'anana Land for $52 Million to Boost Cash Flow

Efi Capital Real Estate has announced the sale of a plot of land in Ra'anana to Shmuel Baruch Investments for NIS 193.5 million (approximately $52 million). The land includes permits 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 "Price Target" program, and 44 for the free market.

In addition to the land and development costs, Shmuel Baruch Investments will reimburse Efi Capital NIS 700,000 for expenses, bringing the total expected proceeds for Efi Capital to NIS 194.2 million. Efi Capital had acquired the land through a tender in April 2025 for NIS 163 million, including development costs. The plot is situated in the Ra'anana West plan, a large development area slated for 6,040 apartments and significant commercial space.

The company anticipates a pre-tax profit of approximately NIS 4 million from this transaction. After repaying existing financing on the land, Efi Capital expects to have NIS 47 million in free cash flow. This move is intended to reduce the company's debt and leverage, thereby strengthening its financial flexibility.

This sale is part of Efi Capital's strategy to improve its cash flow, which has recently shown a negative trend. The company's cash and cash equivalents dropped significantly from NIS 204 million at the start of 2026 to NIS 72.5 million by the end of June, a decrease of about NIS 131.5 million in six months. Financing cash flow also contracted sharply.

Despite a warning sign in its reports due to negative cash flow, the company's board believes there is no cause for concern, citing expected sales from ongoing projects. The Ra'anana land sale was part of a plan to liquidate assets if necessary. The project on this land, "Efi in Ra'anana," has the latest execution timeline among Efi Capital's projects, not expected to begin until the fourth quarter of 2028, indicating a preference for addressing immediate liquidity needs over a distant development prospect.

This is the second deal between Efi Capital and Shmuel Baruch Investments in the past 18 months; in August 2025, Efi Capital sold 50% of its rights in a 410-unit project in Kiryat Ata for NIS 67.5 million. Efi Shakedi, Chairman and CEO of Efi Capital Real Estate, stated that the deal reflects the company's policy of active capital and asset management, aligning capital allocation with project progress and potential. He added that the company is continuously monitoring invested capital and expected returns, and this sale represents realizing value appreciation.