Africa Israel Housing to Split Income-Generating Assets into New Company

Africa Israel Housing, a prominent Israeli real estate firm, is undergoing a significant structural change. The company's board of directors has decided to split its income-generating property operations into a new, dedicated company. The shares of this new entity will be distributed as a "dividend in kind" to shareholders.

This move will consolidate commercial and residential rental properties under the new company. Specifically, three rental housing projects, along with commercial and employment properties within existing residential developments, will be transferred. The total value of the assets being transferred, based on second-quarter reports, is approximately 1.1 billion shekels, with a net value of around 450 million shekels after accounting for liabilities.

The new company will operate as a "sister" company to Africa Israel Housing, focusing on the income-generating assets. Among the properties slated for transfer are the Arnona rental project in Jerusalem, which was recently occupied, and two future rental projects in Tel Aviv's Shdei Dov and Mount Scopus in Jerusalem.

Commercial and employment spaces from various existing and planned residential projects in locations such as Modi'in, Tel Aviv, Azor, Herzliya, and Givat Shmuel will also be moved to the new entity. The board's decision initiates a thorough examination of the feasibility and benefits of this split.

Ronit Ashad Levi, CEO of Africa Israel Housing, stated that this is a natural step in the company's evolution, reflecting its strength and expertise. She believes the split will allow both companies to operate as focused entities with strong business foundations and clear specializations, fostering further growth and value creation. A representative from the Lapidot group added that the strategic move aims to optimally leverage the value and potential of different business sectors, enabling each focused company to capitalize on its advantages and pursue new opportunities.