Since 7/10 Israel Canada has sold 146 apartments for $129 million
Since 7/10 Israel Canada has sold 146 apartments for $129 million
The real estate company completed the third quarter before the war with a 75% decrease in profit to $2.19 million.
Real estate group Israel Canada reported that it has sold 120 apartments in the Sde Dov project, while the Hanan Mor group has struggled to sell units in the same project. Israel Canada, led by Barak Rosen and Assaf Tuchmeir, also reported the sale of 140 apartments in their Midtown Jerusalem project for NIS 485 million ($129 million). A Calcalist report revealed that the majority of the apartments were sold to the ultra-Orthodox community. The project is set to include a total of 1,000 apartments.
Israel Canada also reported selling office space covering 16,000 square meters in the Vertical project on the border of Tel Aviv and Ramat Gan for NIS 532 million ($142 million) in the third quarter. The impressive figure presented by the company concerns the sales volume since the attacks of 7/10 which nearly froze the real estate market. According to the company's quarterly reports, since that date, they have sold 146 apartments for NIS 582 million ($155 million) and additional offices for NIS 86 million ($23 million), totaling NIS 668 million ($178 million).
Israel Canada's challenge concerns their loan for the Sde Dov project, amounting to NIS 1.224 billion ($327 million), with its repayment scheduled for May 2024. For this reason, the loan was classified under the current liabilities section. However, the company estimates that it will enter into an agreement for the project given the pace of apartment sales.
Israel Canada concluded the third quarter of 2023, the quarter preceding the war, with a net profit of NIS 8.2 million ($2.19 million), compared to a net profit of NIS 33.2 million ($8.8 million) in the corresponding quarter of 2022, a decrease by 75%. In the first nine months of 2023, the company incurred a loss of NIS 125.5 million ($33.5 million), compared to a profit of NIS 330 million ($88 million) in the corresponding period, mainly due to losses in various stocks.
The company recently conducted a stock offering, raising NIS 170 million ($45 million) from institutional investors two weeks ago. Its remaining cash stands at NIS 320 million ($85 million) alongside equity of NIS 2.8 billion ($749 million).
Correction (27.11.23): A previous version of the article mistakenly had "billion" instead of "million" in the headline.
First published: 15:17, 26.11.23
