Ruby Capital, specializing in real estate financing and investments, recently signed a financing deal with the Ayala Agam purchase group for the construction of the Psagot Ayala project in the Psagot Aphek neighborhood of Rosh Ha’ayin. The project will be financed jointly with the Meitav investment house. This is a mixed-use project, including residential, commercial, and office spaces, featuring 50 residential units in four 3-6 story buildings, three office buildings with 2-4 floors, a commercial floor totaling approximately 10,000 square meters, and two multi-story parking garages.
The project’s construction cost is estimated at around NIS 306 million ($83.7m.), and the financing provided by Ruby Capital, in collaboration with Meitav, stands at about 195 million NIS. The financing agreement was established in collaboration with the law firms Anglard & Co., representing the financiers, and Pickholtz Simana & Co., representing the purchase group.
Yaakov Nitzan, CEO of Ruby Capital, noted: "The agreement with Ayala Agam joins a series of deals we made over the past year for financing purchase groups. We estimate that due to the high interest rates in the economy and the continued rise in apartment prices, purchase groups will capture a larger share of the housing market. Given our expertise and professionalism in the industry, we offer organizers creative and professional financing solutions. At the same time, we recognize the professionalism of the organizing bodies, which are supported by high-quality professionals ensuring the completion and success of the projects."
Gadi Berko, Head of Credit at Meitav, stated: "Financing purchase groups allows for higher returns than regular construction financing, and also includes mechanisms that reduce risk, so the returns generated offer better yields for members, especially compared to the available alternatives in the market."
Ronen Ben Yehuda, CEO of Ayala Agam, stated: "Since its establishment, Ayala Agam has successfully delivered dozens of projects, including in the purchase group model, in which it specializes and is considered one of the leading companies in Israel in the field. This includes an accumulated total of thousands of housing units and tens of thousands of square meters of commercial and office space. All completed projects received bank financing from leading entities in the market, while Ayala Agam has built a strong reputation among financing sources in the industry.
“We are excited to move forward with another project, with Ruby Capital leading the financing,” Ben Yehuda said. “ As part of this, hundreds of group members underwent underwriting and recently signed the credit framework documents at our offices located in the new entertainment and leisure complex 'Ayala 360' we established in the city of Modi'in – also within a purchase group. We are pleased to report that the underwriting and signing process went excellently, and the group will soon begin receiving the financing, allowing for the commencement of construction once building permits are obtained shortly."
