November 14, 2021

Electra Real Estate establishes first fund outside the United States - the stock jumps

The yielding real estate company, controlled by Elco, will set up in the UK, together with a local partner, an investment fund in the office field to raise £ 200 million; this is the company's first investment fund outside the United States; Electra Real Estate shares are up nearly 9% on the tenth consecutive day of gains.

Hezi Sternlicht

14/11/21, 11:26

Electra Real Estate, which manages four funds in the domain of multi-family housing in the United States, is expanding its operations to new areas and new geographical areas. The company, controlled by Elco (59.6%) of the Zelkind brothers, announced today (Sunday) its entry into the British market and its intention to raise £200 million ($ 268 million) to a fund that will invest in the field of offices.

Electra Real Estate manages $ 2.7 billion in assets, mostly in the multi-family housing in the United States. Three of the funds hold multi-family housing, and the third is a debt fund operating in the same field. In addition, the company is establishing a Reit fund that specializes in the hotel industry in the United States. Electra Real Estate stock is responding to the announcement with a jump of almost 9%, which provides the company with a market value of NIS 3.4 billion. This is the tenth consecutive day of gains in Electra Real Estate stock, which has jumped more than 132% since the beginning of the year.

London, UKPhoto: Shatterstock

The company will set up the investment fund with a local partner, the investment company Valeo Capital. The parties will enter as partners in a fund that will be established (GP) and raise limited joint funds (LPs), similar to the way the company operates in the field of rental housing (multi-family housing, single family and the debt fund for multi-family housing) as well as in the hotel sector.

Valio Capital manages £ 1.2 billion worth of properties and offices with a total area of 3 million sq.m. This is a company with 25 years of experience, with 130 tenants in the properties, of which it charges an annual rent of 63 million pounds.

Amir Yanic(Photo: Eldad Refaeli)

Amir Yaniv, VP of Business Development at Electra Real Estate, said that the entry into the British market comes after an in-depth and lengthy analysis of the office market there. Yaniv added: "We have entered into a co-operation agreement (Co-GP) with a local partner with extensive experience, local connections and a strong reputation to establish a new branch of activity for Electra Real Estate, which will be the first outside the United States in the field of investment funds.

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