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.
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.
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 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.