IPO plan returns: Beit Bakfar sheltered housing chain has submitted a prospectus to the Securities Authority

The IPO plan returns to the table: The Beit Bakfar sheltered housing chain has submitted a prospectus to the Securities Authority ahead of an IPO in the coming weeks. Calcalist has learned that the chain controlled by the Blushtein family aims to raise NIS 300 million at a value of NIS 1.2 billion.
The company, which is managed by Mickey Perens, has begun quiet talks with institutional bodies to grope ahead of the move, however an official Broad Show has not yet begun and it will begin with the publication of a prospectus. Bank Hapoalim holds 20% of the chain it acquired in September 2020 with a first investment of NIS 150 million into the company at a value of NIS 600 million before cash, with the bank having the option to increase the investment later.
The value the company is aiming for reflects a multiplier of 1.6 on equity. A house in the village decided on the issue following a backlash from the sale of control of another sheltered housing network, 'Up to 120', to Shafir Engineering. The deal signed in August reflected up to 120, which was owned by the Phoenix, a value of NIS 1.35 billion. However, this is a higher multiplier than that of a transaction up to 120 that was made at a multiplier of 1.35 on capital. The corresponding Mediterranean towers are also traded on the stock exchange at a multiplier of 1.5 on equity (NIS 950 million capital). Apart from the income from the value of a sheltered housing company, its real estate is also derived. The houses are located on land owned by the companies.
A house in the village was built in 1990 by the Blushtein family. Currently, the chain has about 1,000 housing units in five sheltered housing units spread throughout the country: two in Kfar Saba, one in Gedera, one in Bitan Aharon and one on the shores of Kinneret, near Ginosar). The last branch was excluded from the deal with Poalim Capital Markets because it covers an area of ​​80 dunams, and in terms of a house in the village it is a real estate potential that it is priced separately. The land of a house in a village in Romania was included, which the capital markets workers have no interest in and their development.
Each of the house's centers in the village offer a variety of leisure and entertainment activities, advanced medical services. Today, the largest company in the country in the field of sheltered housing is Mishan, which is owned by the Histadrut, with 2,508 housing units. In second place is the Mediterranean Towers Company, which is traded on the Tel Aviv Stock Exchange at a value of NIS 1.49 billion, with about 1,600 housing units. Rubinstein Estate is in third place with 1,200 housing units.
In fourth and fifth place are the Palace chain controlled by Azrieli and a house in the village with about 1,000 housing units each. It is estimated that the sheltered housing market in Israel includes about 14,000 housing units, most of them in the center of the country.
The sheltered housing market experienced a slowdown during the Corona period due to the relatively many infections of the elderly tenants, but has since recovered. The market is considered to have great growth potential because the elderly population grows as life expectancy in the country increases. Life expectancy in Israel in 2018 was 80.9 years for men and 84.8 years for women. According to data from the Central Bureau of Statistics for 2019, the share of adults over the age of 65 is 12% of the Israeli population. The forecast is that by 2040 their share of the population will increase to 14% of Israel's population - 2 million people.
The business model of home activity in the village and other sheltered housing companies is based on a deposit of NIS 2-1 million that the tenant pays and gives that tenant the right to use the apartment he receives until the end of his life. The deposit is eroded over the years, at an annual rate of 3% until it reaches 50% of the initial amount. In addition to the deposit, the tenants in the sheltered housing pay a monthly maintenance fee of NIS 10,000-7,000, which includes the basic services offered by the property, in addition to food.