"Beit B'Kfar" nursing home chain is expected to successfully complete its initial public offering

In the coming days, the "Beit B'Kfar" nursing home chain is expected to successfully complete its initial public offering and join the stock exchange.
In the offering, 20% of Beit Kfar's shares will be sold for NIS 240 million at a value of NIS 1.15 billion before the money and NIS 1.3 billion after the money. This will make a house in the village the second largest sheltered housing chain traded on the stock exchange, after the high school towers, which is traded at a market value of NIS 1.5 billion - and is controlled by Moti Kirschenbaum, Boris Levin, David Fattal and Chen Lamdan.
Of the total proceeds from the offering, the Blushtein family will receive NIS 120 million, whose holding in the company will be reduced to approximately 62% (assuming full dilution following the exercise of the options). An additional NIS 120 million will be poured in, and will be used as equity for it to finance the purchase of land in the north, where it is building two new housing units, as well as for additional expansion needs.
Investors were also given options in the offering, which can be exercised in the next three years at a company value of NIS 1.25 billion - so that the effective price at which the offering is made is NIS 1.05 billion before the money. If these options are exercised, the Blushtein family will receive additional consideration of NIS 200 million. The IPO of a house in the village is led by Discount Capital Underwriting and IBI Underwriting.
The "Beit B'Kfar" chain is managed by Micha Perens, and the company's chairman is Yaniv Blushtein. Apartments in Beer Yaakov, a house in the village is expected to own more than 1,200 housing units within three years.
Sheltered housing is a solution for population-based strata. Those who are interested and can finance it live in their own housing unit, and receive a medical and nursing response when needed. This is a housing alternative, which involves a significant capital investment by the tenant in the sheltered housing - a deposit whose amount depends on the location of the house and the level of services it offers, the size of the apartment and its level.
The tenant usually loses 3% -4% per year of the deposit over a period of 10-14 years. The balance of the fund is returned to the tenant or his heirs upon cessation of use of the property. Alternatively, the tenant pays a monthly rent in addition to the maintenance fee for operating the sheltered housing.
The model according to which most of the activity of a house in the village is done today is leasing, according to which it rents out the houses to the tenants and receives rent for it. It chooses this alternative because it has no large debts (deposits that it has to repay to the replaced tenants), and as part of this alternative, it receives in addition to current rents an increase of 1.5% each year as well as the rise in the index.
The income of a house in the village in January-September 2021 amounted to NIS 63.7 million, an annual rate of NIS 85 million - similar to the income in 2020 and 2019. Net operating income (NOI) reached NIS 41.7 million in January-September 2021, an annual rate of NIS 56 million, compared with NIS 54.6 million in 2020 and NIS 54.8 million in 2019. The net profit in this period amounted to NIS 24 million, an increase of 26% compared to the corresponding period - and it was positively affected by real estate revaluations performed.