About Gamla-Harel Residental Real Estate Ltd.
Gamla-Harel Residental Real Estate Ltd. is a joint partnership between two companies that form the foundation of the real estate and financial markets in Israel, Gamla-Harel is a principal player in the field of real estate financing and investments. The partnership is comprised of two of Israel's leading companies: Harel Insurance Investments and Financial Services Ltd., one of Israel's largest insurance companies, and Gamla Millennium Investments Ltd., an Israeli conglomerate with large-scale investments in real estate initiatives around the world.
Harel Insurance Investments and Financial Services Ltd.
Harel Insurance Investments and Financial Services Ltd. is a publicly traded company, and is the third-largest insurance company in Israel. Harel Investments is a dynamic investment company with activity in many fields related to insurance and savings, such as long-term savings plans like life insurance, IRAs, continuing education funds, and pension funds; stock market investments; and financial services. The company is also active in real estate.
Harel Investments is traded on the Tel Aviv Stock Exchange (TASE), and is held by the Hamburger family with 39.91% of the company's stocks, both directly and through a holding company, and Sampoerna Capital with 20.2% of the company’s stocks.
Gamla Millennium Investments Ltd.
Gamla Millennium Investments is part of Colmobil Group, a concern owned by the Harlap family, and Zanex Capital, which is owned by attorney Efraim Spitalni. The company has made significant real estate investments in building plots and in income-producing assets in Israel, Canada, Sweden and East Europe.
Harel Investments and Gamla Investments have created a profitable partnership with tangible results in the form of a leading company based on cooperation, stability, reliability, and professionalism.
Company Activities
Gamla-Harel Residental Real Estate Ltd. provides shareholder financing to help developers receive the necessary financial support from banks for residential real estate projects.
What is Shareholder Financing?
Shareholder financing is a relatively new field in Israel, and it has gained momentum in recent years. Most real estate developers today rely on bank loans for financing. According to this method, the bank and the developer sign an agreement for financial assistance that determines the project's conditions, the necessary guarantees and the situations in which they may be used. All of the project's revenues are deposited in a special bank account that is controlled by the bank, while at the same time sale guarantees are issued to the purchasers of the apartments. As the project's building progresses, the bank "releases" capital for financing the project's costs.
In order to receive a bank loan from the banking system, developers must put up some of their own capital in the amount of 20%-40% of the cost of the project. This equity is used by the lending bank as a "safety net" to secure its financing for the project.
What is the role of Gamla-Harel?
Gamla-Harel offers developers the "safety net" that is needed in order to secure a bank loan. This shareholder financing is conditional upon the amount that the bank is lending for the project. Gamla-Harel cooperates with most of the commercial banks.
How is the financing provided?
The lending bank demands that the developer put up their own capital in the form of cash or liquid assets (deposits/bank guarantees), or by providing collateral in the form of assets. Gamla-Harel provides the developer with this capital in the following formats:
The developer may select the manner in which they will receive the financing.
To find out more about shareholder financing, or to receive additional material related to the company's activities, please contact us:
Gamla-Harel Residental Real Estate Ltd.
3 Daniel Frish St., Tel Aviv
Tel: +972-3-6086818
Fax: +972-3-6086815
office@gamla.co.il
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