ora Secures NIS 750 Million Investment from Phoenix in Expansion Move

Aora, a leading player in evacuation and construction projects in Tel Aviv and Gush Dan, has secured a substantial investment from Phoenix totaling NIS 750 million across 11 projects. This investment marks a significant boost in funding for Aora's ambitious growth plans.

Phoenix will inject NIS 400 million in equity into seven of Aora's ongoing construction and evacuation projects. This follows an earlier investment of NIS 350 million in four projects announced in April 2023. The new agreement replaces Phoenix's option to invest NIS 250 million in another project, consolidating its commitment to Aora's expansion strategy.

Strategic Partnership

Under the terms, Phoenix will hold a 65% equity stake in the projects, while securing 30% of the rights in each. The partnership underscores Phoenix's confidence in Aora's strategic direction and market potential.

In response to the investment news, Aora's shares rose by 2% in trading on the Tel Aviv Stock Exchange, reflecting positive market sentiment towards the company's growth prospects.

Aora reported strong sales performance with 409 apartments sold in the first half of 2024, prompting an upward revision of its annual sales forecast to 800 apartments. The company aims to increase its apartment inventory to 100,000 units by 2026, highlighting ambitious expansion targets.

Recently, Aora completed the acquisition of Magido, expanding its portfolio with 3,000 housing units and significant commercial space. Negotiations are also underway to bring in an institutional partner for its subsidiary managing commercial centers.

Financial Impact

The infusion of funds from Phoenix is expected to strengthen Aora's financial position without diluting existing investors, enhancing its ability to capitalize on growth opportunities amidst a buoyant market.

With Aora's market value already at NIS 4 billion and a recent 40% increase since the beginning of the year, the company remains poised for further strategic advancements in Israel's urban renewal and construction sector.

As Aora continues to expand its footprint and consolidate its market presence, industry observers are keenly watching for developments that could shape its trajectory in the coming years.