Aura Buys Beit Bakfar for $450 Million, Yielding $250 Million Windfall for Blushtein Family

Real estate developer Aura, controlled by Yaakov Atrakchi, announced the acquisition of the "Beit Bakfar" retirement home chain for NIS 1.7 billion (approximately $450 million) just one day before Israel's dramatic Knesset elections. The deal represents a significant valuation increase for the controlling Blushtein family shareholders (55%), who are expected to receive NIS 935 million (about $250 million). This marks a dream exit for the family, led by patriarch Shalom Blushtein and his four children, nearly 40 years after they entered the senior living sector when it was still nascent.

Shalom Blushtein, 79, founded the family business starting as a small renovation contractor, later accumulating wealth through land purchases in upscale areas like Caesarea and Herzliya Pituah, where he built villas. His ventures expanded to commercial properties in Tel Aviv, including the "Beit Blushtein" building. He then focused on retirement homes, establishing the first "Beit Bakfar" facility in Kfar Saba in the late 1980s, which grew into the family's flagship business. Blushtein was also a close friend of the late Mossad chief Meir Dagan, accompanying him during his final days and conveying farewell messages on his behalf to figures like former Prime Minister Ehud Olmert. While Shalom Blushtein no longer holds an official role, he provides supervision and advisory services to the company. The family business is currently led by his eldest son, Yaniv Blushtein, 54, as Chairman, with his younger brother Tomer Blushtein, 47, serving as VP of Business Development.

"Beit Bakfar" operates four senior living complexes with 920 units, maintaining a 90% occupancy rate. The company is also developing three new complexes. In 2022, "Beit Bakfar" went public on the Tel Aviv Stock Exchange at a valuation of NIS 1.15 billion, raising approximately NIS 128 million. The Blushtein family also sold shares during the IPO. Over the years, the family has received approximately NIS 90 million in dividends, bringing their total proceeds from the company, prior to this acquisition, to over NIS 200 million. Additionally, the family privately owns the "Hof Kinneret" senior living facility.

Poalim Equity, the investment arm of Bank Hapoalim, which invested NIS 150 million for a 20% stake in "Beit Bakfar" before its IPO, is expected to receive about NIS 304 million from the sale to Aura, representing a significant return on investment. Management and employees of "Beit Bakfar" will also receive retention bonuses totaling up to NIS 22 million. The senior living sector in Israel has attracted substantial investment from financial players and real estate companies due to its stable income generation and growing demand driven by an aging population and increased life expectancy.