Electra Group enters the real estate sector in New York: It is acquiring contracting companies there

by Ifi Reporter Category:Real Estate Dec 30, 2018

The Electra Group, controlled by Daniel and Michael Salkind, is entering the real estate sector, but not in Israel but in the US. It is acquiring two contracting companies that deal with the electro-mechanical field in New York.
According to the agreements signed, Electra is acquiring 51% of the share capital of Hellman Electric and Gilston Electrical.
The two companies are contractors in the field of electrical works in New York City. The total investment is estimated at NIS 155 million. Investors on the Tel Aviv Stock Exchange are happy for the time being, sending Electra Group shares up 2%.
The two companies employ about 470 employees and have accumulated aggregate work of NIS 1.2 billion. Both companies are profitable, according to Electra Group's announcement.
Itamar Deutscher, CEO of Electra, said that the acquisitions are in line with "Electra's global expansion strategy, and is adding to the growing activities in Poland and other European countries."
Electric was established in 1926 and operates, among other things, in the field of large electrical works, including infrastructures and installations in railway stations, sewage treatment plants and more. Helman Electric, established in 1930, is engaged in electrical contracting for heavy construction in the areas of transportation, lighting, security and safety and control systems. The two companies have additional divisions and their activities are concentrated in New York City.

Recently we learned Israelis occupy the eighth place in the world in foreign investment in real estate in the US. A survey of Israeli investments since the beginning of the decade shows that Israeli companies and private individuals invested $ 11.5 billion in real estate purchases in the United States.
According to a comparative report by the business services firm JLL, which specializes in real estate and investment management. The report shows that the preferred city for Israeli investors is New York with investments of $ 3.2 billion, followed by Washington, DC, with $ 1.33 billion, and Houston, Texas with $ 692.6 million, about half of Israeli investments. 15% in commercial areas and shopping centers, and 5% in industry.
Since 2010, Israeli real estate investments in the US have come from 55 private and public investors, 28 of them (about 50%) being private investors, and 27 of them (the remaining 50%) are institutional, About 43% of all 55 investors are publicly traded companies.
The list of countries that invest in American real estate leads by a large margin of the rest of the northern neighbor Canada, whose residents have invested more than $ 100 billion in real estate purchases since the beginning of the decade, followed by Chinese investors who invested $ 40 billion and residents of Singapore and Germany invested $ 24 billion.
"Israeli investors continue to appreciate US commercial real estate and the stability it provides," said Richard Blucksam, head of JLL's Capital Markets Division. While many investors in the world preferred US offices, Israeli investors have shown willingness to invest in America's flourishing multidisciplinary and industrial sectors.
JLL entered into official activity in Israel at the beginning of the year and doubles its existing workforce by recruiting another 80 employees. The entry and accelerated growth is the result of increased investment in Israel by international high-tech companies. JLL has global agreements with international corporations in the fields of high-tech and banking for the provision of building management services, locating real estate and handling rental contracts in each country in which the corporations operate worldwide, as well as in Israel.
"International corporations want to maintain uniform standards in their offices around the world, whether they are located in Silicon Valley, India, Israel, the Far East or Europe," said Ziv Shor, CEO of JLL Israel. Therefore, international companies in the process of penetrating Israel and those expanding their activities in Israel apply to us in order to find assets that are suitable for their needs and to manage them. "
Jones Long La Sal is one of the largest commercial real estate firms in the world and operates in dozens of countries, in North and South America, Europe, the Middle East, Africa and the Far East with 80 million square meters of managed assets. The company was founded in London in 1783 and now has a market cap of $ 7 billion and employs 88,000 people.

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