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General Insurance and Michal Funding have established a new loan fund of approximately 400 million shekels to support long-term rental housing projects in Israel, each contributing 200 million shekels to the initiative, facilitating access to financing for developers without the need for high equity capital.
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General Insurance, Michal Funding, Loan Fund, Real Estate, Rental Housing, Israel, Financing, Developers, Real Estate Projects
General Insurance and Michal Funding Launch New Loan Fund for Rental Housing Projects
New Fund Overview
General Insurance and Michal Funding have announced the formation of a new loan fund aimed at supporting real estate developers in Israel, particularly in the sector of long-term rental housing. With a total capital of approximately 400 million shekels, the fund will provide essential financing to developers and real estate companies engaged in purchasing land and executing rental housing projects over the coming years. Each company is set to contribute 200 million shekels to the fund.
Purpose of the Fund
The fund will offer complementary financing to help developers navigate the current challenges they face in securing bank loans under stringent conditions. By providing tens of millions of shekels per project, the fund aims to enhance developers’ ability to obtain financing without necessitating higher equity inputs or breaching loan conditions. This initiative comes in response to escalating interest rates that complicate real estate financing in Israel.
Financial Strategy
General Insurance is expected to allocate a significant portion of its investment in the fund from its members’ funds, thereby providing a robust financial backbstart for the initiative. This strategic move underscores the companies’ commitment to fostering growth and stability in the real estate market amidst challenging economic conditions.
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