The Opportunity
In 2023, we identified a prime land parcel surrounding the planned Ra’anana metro line. Recognizing the transformative impact the metro system will have on real estate values, we assembled a group of investors through our Group Investment Program to acquire the land. This strategic location positioned the group for significant long-term gains.
The Plan
The group is currently undertaking planning activities to secure a building permit for a boutique development comprising 30 residential units and 3 commercial units. The project aligns with our expertise in value-add investments by enhancing the land’s utility and marketability.
The Outcome
According to the business plan, the estimated profit for the project is 110% over 4 years, with a projected cash-on-cash return of 219.8%, achieved through:
- 50% equity investment by the group.
- Strategic financing for the remaining 50%, leveraging favorable terms with an average annual interest rate of 4.5%.
