Electra Real-Estate: Quarterly Net Profit Skyrocketed by 522%

Dotan Levi
May 11th, 2022; 10:45PM

Electra Real-Estate’s net profit in the first quarter amounts to approximately 253.2 million shekels – a 522% leap compared to the same quarter last year – according to the company’s reports which were published today.

The company’s revenues skyrocketed by 481% to approximately 364.6 million shekels – mostly due to the massive growth in the income from promote fees to approximately 262 million shekels. This datum represents the company’s part as a general partner (GP) in changing the value of the housing groups that were assessed or implemented during this period – not even including the minimum returns paid to the limited partners for their investment in the assessed property.

Electra Real Estate of the Elco Group engages in the establishment and management of private investment funds. The company currently manages five investment platforms: housing groups, including approximately 30,000 housing units (four funds); forty-six debt financing transactions (two funds); privately-owned homes for investment, 2,200 houses (eleven partnerships); a hospitality REIT, four hotels and an offices fund in the UK – an office building in London. As of the time of the publication of the 2021 annual report, the value of real estate is approximately 7.4 billion dollars. The investors’ managed capital amounts to 3.8 billion dollars.

A property of the company in Florida (photography: the company’s website)

Since the beginning of 2022, Electra Real-Estate has completed several developments as part of the new and senior funds. The second debt financing fund for the funding of housing groups has completed its first close in April 2022 and it currently stands at 215 million dollars. As yet, the fund has completed two transactions with a total of 1,339 housing units.

As for the company’s hospitality operation, which is held by the hospitality REIT in the United States, the company has met its target and raised 700 million dollars within eleven months, and it currently holds four hotels with 767 rooms in New York, Washington, West Palm Beach, and Miami worth 299 million dollars. In addition, the fund has signed a binding acquisition agreement for another hotel in Washington. At the same time, the company is in the process of establishing two additional investments fund of significant magnitudes: the fourth fund for investments in housing groups in the United States with the target to raise one billion dollars. The company is in the advanced stages of achieving this goal with a number of investors, including institutions, that committed to approximately 725 million dollars. In April 2022, the fund acquired a housing group in Texas in exchange for 55.6 million dollars.

Electra Real-Estate has set a target of raising 200 million pounds sterling for the first fund for investments in offices in the UK. The company has joined a local partner as part of the establishment of the new fund and in March 2022, it reported the acquisition of an office building in the center of London for approximately 17.5 million pounds sterling.