Ashtrom in Talks to Sell Fifth of Rental Operations to Clal Insurance
Translated & summarized from Globes by baba
Ashtrom is in talks to sell 20% of its rental operations to Clal Insurance, while a separate deal to sell 20% to Migdal has been delayed by 30 days. The Migdal deal, valued at NIS 451 million, was originally set to close with partial payment by November 11. Ashtrom Residential Rentals manages over 3,200 apartments and is developing new projects. The company's strategy is to sell off parts of its rental operations to institutional investors.
The story in 5 lines · by baba
- Ashtrom is negotiating to sell 20% of its rental operations to Clal Insurance.
- A deal to sell 20% to Migdal for NIS 451 million has been delayed by 30 days.
- Ashtrom's strategy involves selling portions of its rental operations to institutional investors.
- Ashtrom Residential Rentals oversees a portfolio of over 3,200 apartments.
- The delay in the Migdal deal is described as a technical, non-material issue.
Ashtrom is in negotiations to sell 20% of its rental operations to the Clal Insurance Group. This comes as the company is simultaneously in the final stages of agreeing to sell an additional 20% to the Migdal insurance company, though the implementation of that deal has been postponed by a month. Ashtrom has decided, as a strategic move, to offer parts of its rental operations for sale, with a preference for institutional investors.
Earlier this year, in June, Ashtrom signed a binding memorandum of understanding with Migdal to acquire 20% of Ashtrom Residential Rentals, the company's long-term residential rental development arm. The deal was valued at NIS 451 million, reflecting a company valuation of NIS 2.26 billion. According to the agreement, 50% of the payment was due by November 11, with the remainder to be paid in installments by the end of 2032.
However, Ashtrom announced to the stock exchange that both parties have agreed to extend the period for fulfilling the conditions precedent by an additional 30 days, pushing the completion date to December 11. The company described this as a minor technical delay.
In addition to the Migdal deal, Ashtrom is in discussions with another institutional body to sell a further 20% of its rental operations. While Ashtrom did not name the entity, it is understood to be Clal Insurance.
Ashtrom Residential Rentals manages a portfolio of over 3,200 apartments in various stages of development across projects in Haifa, Or Yehuda, Jerusalem, and Tel Aviv. The company is also advancing new projects, including the significant "Doctors' Housing" project in Tel Hashomer, which will comprise 1,189 apartments.
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