Economy03:15 · Jul 27

Marathon Real Estate Fund Raises 750 Million Shekels for Second Investment Fund

Calcalist

Translated & summarized from Calcalist by baba

Key points

01Marathon raises 750 million shekels for its second real estate investment fund, surpassing the 600 million target.
02Migdal and Clal Insurance anchor the fund, investing half the total amount for the first time.
03The fund targets a 20% gross return with an eight-year lifespan and up to 70% leverage per deal.
04Marathon specializes in acquiring and enhancing complex properties through rezoning and planning.
05The first fund raised 425 million shekels in 2021 and achieved a 25% IRR across 11 projects.
06Dor Ohana joins as a partner with the launch of the second fund, supporting key transactions.

In this story

People

Moti Kirshenbaum, Yuval Gayer, Itamar Giron, Tsahi Zanzuri, Nir Dalek, Dor Ohana

OrganizationsMarathon, Migdal Insurance, Clal Insurance, Teachers and Kindergarten Teachers Pension Fund

PlacesIsrael, Lod, Ness Ziona, Kadima-Zoran, Nahariya, Ramat Gan

The story · English

Marathon, a real estate investment fund specializing in complex property acquisition and enhancement in Israel, is completing a capital raise of 750 million shekels for its second fund. Initially targeting 600 million shekels, the fund increased its goal due to strong investor demand. Migdal Insurance and Clal Insurance are anchor investors, together committing half of the total raised. This marks their first investment in Marathon funds, having not participated in the first fund. The Teachers and Kindergarten Teachers Pension Fund, a previous investor, is also participating again alongside several prominent family offices.

The fund has an eight-year lifespan with two possible one-year extensions and a four-year investment period from the final closing date. It plans to finance up to 70% of each deal through leverage and targets a gross return of 20%. Management fees are set at 2%, with performance fees of 20% for returns above 7% and 25% for returns exceeding 12%. Marathon focuses on acquiring properties with planning, legal, environmental, or business complexities, purchasing them before full value appreciation, and then advancing rezoning and planning to unlock value.

Founded by Moti Kirshenbaum (chairman), Yuval Gayer, and Itamar Giron (managing partners), Marathon’s first fund raised 425 million shekels in 2021 and has since acquired assets worth about one billion shekels. It has delivered an internal rate of return (IRR) of 25%, including revaluations, across 11 projects. Notable investments include the Delkol industrial site in Lod, transformed into a residential neighborhood with 1,530 apartments and commercial space, and land acquisitions in Ness Ziona, Kadima-Zoran, Nahariya, and Ramat Gan for residential and commercial developments.

With the launch of the second fund, Dor Ohana joins as a partner, having supported Marathon’s operations and key transactions from the start. The fund’s leadership from Migdal and Clal Insurance are Tsahi Zanzuri and Nir Dalek, respectively.

Read the original at Calcalist