Habira Group launches Israel's third REIT
The Habira Group has launched Israel’s third real estate investment trust (REIT).
The REIT’s initial focus will be on commercial properties, but it will also consider opportunities in industrial, retail and residential real estate.
The company's goal is to build a diversified portfolio of high-yielding properties that will allow it to pay substantial dividends to its shareholders.
A REIT is viewed as an investor-friendly vehicle for investing in Israeli real estate. Under the rules governing REITs, an Israeli REIT is generally not subject to corporate tax and must primarily invest in income-producing real estate, distribute to its shareholders annually substantially all of its income and capital gains, be publicly traded on the Tel Aviv Stock Exchange and limit leverage to less than 60 per cent of the value of its real estate assets. In addition, investing through a REIT allows investors to benefit from professional management of their investment.
"Israel has a reputation for having a strong and sustainable real estate market," says Mark Goldfarb, CEO at Habira Group. "Unfortunately, it also has the reputation of being a tough market to navigate. Regulations, approvals, and bureaucracy all make investing in Israeli real estate a challenge for those not familiar with the market. The Habira Group REIT is designed to address these issues, offering a much simpler and friendlier path for both Israelis and non-Israelis to invest in Israeli real estate, with high returns and low risk."
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