The Hagshama real estate investment fund has successfully completed its third financing round in six months via a prospectus. $8.7 million (NIS 30 million) was raised for funding the purchase and upgrading of a multi-family residential complex in Connecticut.
The minimum price for participating in the offering was $30,000, with a total of 868 participation units being offered to the public at $10,000 per unit, with a minimum order of three units. Hagshama notes, "The participation units were offered solely to members registered in the Hagshama fund investors database, usually on a first come, first serve basis."
Financing round for a specific project
Hagshama will use the money it raised to buy the Eastpoint at Dorset Crossing multi-family residential project located in Simsbury, Connecticut, together with Dorset CS, the developer. The acquisition is slated for next month, after which Hagshama investors will own 90% of the project and Dorset CS 10%.
The complex contains 168 housing units in seven buildings and 294 parking spaces on a 40-dunam (10-acre) site. Construction of the complex was completed in 2015, and its occupancy rate is 97%. Leases are for up to one year at rates lower than the market price.
Avi Katz, who started the Cofix Group Ltd. (TASE:CFX) chain of cafes and stores, is the founder and president of Hagshama, and Hanan Shemesh is the chairman. Hagshama is a pioneer of real estate investments funds and companies, and raises money on the Tel Aviv Stock Exchange (TASE) for specific projects by publishing a prospectus.
Completion of Hagshama's current offering brings the total raised on the TASE in this way to NIS 130 million this year in five separate offerings. Hagshama raised NIS 32 million (£7 million) early this year for a development real estate project in London, and raised NIS 27 million ($7 million) more in April for a commercial project in the US. iintoo raised NIS 17 million two months ago, and HAP raised NIS 25 million. Founded in 2009, Hagshama enables small private investors to take part in non-financial real estate investments in an attempt to generate good returns at a time when interest rates are negligible.
To date, eight years after it was founded, Hagshama has raised $2.3 billion, and has made 250 investments, almost all in real estate in Israel and overseas, in projects with a total value of NIS 11 billion.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 26, 2017
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