Non-Recourse Financing for Israel's Build-to-Hold Transition
Don't sell what everyone else dreams of buying.
A unique financing vehicle backed by institutional and private investors, structured for a loan volume of up to 2 Billion ILS.
Loan Terms
Term
5 Years
Minimum of 5 years from the end of construction or acquisition
LTV
Up to 80%
Up to 80% of the asset's value as built
Security
Non-Recourse
Asset-only collateral option available for stabilized assets with coverage ratio of 1.2
Structure
Interest Only
Bullet/Balloon—no principal payments during the term
Eligibility Criteria
Loan Size
Minimum 25 Million ILS
Asset Class
Majority of property must be designated for rental housing
Location
Accessibility to public transportation and employment hubs
Sell vs. Hold Analysis
Scenario: 20 Units | Market Value: 50M ILS | Construction Cost: 36M ILS
Immediate Sale
Total Revenue
₪50,000,000
Net Profit (After Tax)
₪3,561,250
Return on Equity (ROE)
Hold with VESTA (0 Years)
Total Revenue
₪9,840,000
Net Profit (After Tax)
₪3,561,250
Return on Equity (ROE)
ROE Comparison
Disclaimer: For illustration only. Subject to specific project review.
The Institutional Rental Shift
Market Gap
Israel has a shortage of rental supply. The market can absorb ~20,000 units annually, yet only ~4,500 are occupied.
Demand
High housing prices and rising interest rates have created a rigid demand for rental housing among 750,000+ households.