The fundraising target for the new fund that will be used to secure supplementary financing for multifamily development projects is more than double the fundraising target of the first fund the company started in 2020, which has since produced an 12% annual return rate.
Hezi Sternlicht
3:48 p.m., 16 February 2022
Electra Real Estate continues to expand its investment business for financing multifamily development projects in the USA by announcing a second fund with a $500M fundraising target. The fund will provide a mezzanine loan (a form of loan used to secure supplementary financing for development projects) and Preferred Equity Investments for financing multifamily development projects in the USA.
In June 2021, the first fund completed a $285M fundraise after initially setting a fundraising target of $200M. Electra Real Estate has completed this fundraise within a year and a half from setting up the fund. At the time of publishing the financial results for Q3 of 2021, the fund has completed 32 transactions for financing multifamily development projects in the USA, with a 12% Minimum Contractual Return across the entire existing portfolio.
Recently, the company announced its intention to start a fourth fund for investing in multifamily development projects in the USA, with a $1B fundraising goal and expending its investing funds businesses to new areas. Electra Real Estate is starting a private hospitality REIT and is currently in the process of setting up a fund for private accredited investors and institutional investors designed to invest in office buildings in the UK with a £200M fundraising target.
Electra Real Estate's share price has increased by 2.6%, reflecting a market cap of IlS 3.7B. At the time of publishing the financial results for Q3 of 2021, the company manages $2.7B through its 4 active investment funds, investment partnerships in single-family detachable houses, and a hospitality REIT fund.
Amir Yaniv, Electra Real Estate's CEO, says that "the fund — alongside the fourth fund for financing multifamily development projects, the hospitality REIT fund, new investment partnerships in single-family detachable houses, and the fund for investing in office building in the UK — will enhance the company's growth drivers in line with its investment funds management strategy ".