Categorized | Investing

Israeli REIT to Buy Housing Units in the United States

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The United States residential real estate market continues to look more and more attractive to international buyers and investors. In the most recent sale, the Israeli real estate investment Harel Insurance Investments and Financial Services has partnered with two other companies to purchase another REIT based in the United States. The total transaction is for three hundred and forty million dollars.

The purchase of the United States based REIT will add to the portfolio of the three companies over five thousand five hundred residential units, and eighteen multi-family homes. The residential properties are located in four different southern states.

The deal will give Harel Insurance Investments and Financial Services a thirty-nine percent stake in the properties. The two other partnering companies, Brookfield Asset Management of Canada, and Elco Holdings of Israel, will hold thirty-nine percent and twenty-two percent respectively.

The deal is being praised as a great one for the buyers, as rental properties are high in demand, and considered to be of minimal risk. Many individuals and families in the United States are opting to rent rather than buy new homes. As such, rental prices are on the rise.

Harel Insurance Investments and Financial Services is one of Israel’s most powerful REITs, and will likely continue to expand its portfolio in the United States. Canada’s Brookfield Asset Management is a very strong REIT based out of Canada, and has a total portfolio valued at over one hundred and fifty billion dollars. Elco Holdings is the smallest of the three companies, and has a portfolio valued at roughly one and a half billion dollars.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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