Income-producing real estate fund Timora has raised NIS 250 million in a round led by Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS). Timora, which acquires, improves and manages investments in office, industrial, and logistical real estate in Israel, plans to increase its equity to NIS 500 million over the coming year.
The fund is co-managed by co-founders Dudi Najmi and Adv. Guy Shaya. Both Najmi and Adv. Shaya has 20 years of experience in Israeli real estate. Timora is the second real estate investment fund of the two co-founders and co-CEOs. In 2014, they co-founded Dagan Yielding Properties, an investment company with a portfolio of income-producing real estate worth NIS 300 million. Dagan has invested all of its equity with Najmi and Shaya.
Najmi and Adv. Shaya said, "We thank Clal Insurance and Finance, a leading institutional investor, for expressing its confidence in our fund through Canaf, Clal's investment arm. We look forward to the ventures on the long journey awaiting us and Timora's investors. We are already evaluating several investment properties."
Joseph Dory, deputy CEO and head of Clal Insurance and Finance's investment division added, "We welcome the partnership with Timora. It is a privilege to act as the anchor investor of the fund. I am confident that the fund owners' extensive real estate experience will help maximize the return on long-term investments. The investment is part of Clal Group's real estate investment portfolio, which includes acquisition and accumulation of cash-generating properties that yield risk-adjusted return in our associates and nostro portfolios."
The fund's chair is Oded Shamir, who has managed publicly traded real estate companies, including Industrial Buildings Ltd., Jerusalem Economic Corporation, and Azorim Properties. Roy Yakir, formerly chief investment officer and deputy CEO of Phoenix, will chair the fund's investment committee.
Timora will focus on improving and managing existing income-producing office and logistical real estate. The fund will specialize in buying properties built more than 15 years ago and which are leased at the lower level of market prices. The fund plans to build a portfolio worth NIS 1.5 billion. After acquiring the property, the fund will enhance its value by increasing occupancy, infrastructure modernization and replacement, and new interior design to achieve optimal leasing space utilization. The betterment process is expected to generate higher rental income levels and increase property value.