The real estate company controlled by the Salkind family and TIM, a partner of Electra Real Estate in the US, began cooperating in early 2021. Since then, they have purchased 1,500 homes for half a billion dollars, and have already signed deals to purchase 2,000 homes during 2022 with an investment of $750 million
Electra Real Estate continues to expand in the U.S. and will make $750 million in home purchases over the coming year, bringing the total investment to $1.25 billion.
A statement from TIM, Electra Real Estate's partner in buying homes in the United States, and a presentation by Electra Real Estate itself, show that the two have purchased 1,500 homes since the beginning of 2021, in a scope of about half a billion dollars. The two intend to increase the portfolio to 3,500 homes. In fact, deals have already been signed for the purchase of an additional 2,000 homes in seven U.S. states for a total of $750 million, and these will be completed over the coming year. According to TIM's announcement, the two companies intend to increase their total investment to $3 billion over the next three years.
The intention of the two companies, as stated, is to rent the houses, which have been purchased for $175,000-300,000 each, for $1,500-2,800 per month. This, in order to take advantage of the increase in rental demand, which has occurred against a background of a surge in house prices that keeps many Americans away from the possibility of buying a home.
To date, according to its latest financial report, Electra Real Estate has dedicated equity of approximately $105 million for transactions that have already been made. An amount of about $40 million was provided as initial capital for the additional transactions. Transactions of this type are gradually finalized, so that whenever a transaction is finalized for the purchase of a batch of private homes, the required equity is granted at the same time.
The acquisition transactions of Electra Real Estate and its partner are carried out through the establishment of dedicated partnerships for the purpose of executing each transaction together with various strategic and financial partners throughout the United States, who provide the bulk of the required investment funds. The transactions are carried out in a format according to which Electra Real Estate and TIM are the general partner that manages the activity, and their share in the properties themselves is usually 8-20%.
Electra Real Estate, which is traded in Tel Aviv, operates through private equity funds. To date, it has raised four funds, for which it has raised $2.3 billion, and is currently setting up four more funds. Managed capital stands at $2.7 billion. Electra Real Estate is traded at a value of NIS 3.6 billion, after rising by 151% in the last 12 months.
Apart from the field of private homes, Electra Real Estate operates through its funds in other areas, especially in the field of rental housing. The company recently announced the launch of a fourth fund to invest in U.S. housing clusters, and that it intends to raise about $1 billion.