Real Estate Initiation and Construction - Urban Renewal
Ilan Ben Yishai
About Alad Pssagot
Alad Pssagot is the result of a 2017 merger between Farkash Initiation and Real Estate Group Ltd. (owned by Pinhas Farkash), and the holding company Alad Initiation (owned by Yaron Pitaro and Ilan Ben Yishai). Alad Initiation holds the Wealthstone Fund, and is considered to be one of the largest financing and financial support entities in the urban renewal market. In the framework of the merged group, Farkash Group is responsible for the execution, business development and management, while Alad Initiation is responsible for the financials, including the financing and financial support of the projects. Alad Pssagot is a pure urban-renewal player, and has vast expertise in all of the field’s channels: Pinui Binui, Tama 38/1, and Tama 38/2. The Group’s execution arm for Tama projects is Ashdan Initiation and Construction Ltd., while Alad Pinui Binui Ltd. serves as the Pinui Binui arm.
The Residents – Our Main Asset
The Group invests maximal efforts in nurturing and satisfying the residents, the properties’ owners. The Group is well-aware of the special sensitivities of projects of this type, where the residents are forced to live in active construction sites in the case of Tama 38/1 or leave their homes for long periods of time in Tama 38/2 or Pinui-Binui projects, and accordingly it established a unique support department, which accompanies the residents in each and every step and fulfills all of the requests and needs. Furthermore, the group is fully transparent to its residents and constantly keeps them abreast of all of the planning proceedings, the permit approvals and during the actual construction period.
The company has a particularly solid financial anchor in the form of the Wealthstone Fund. As a result, the company receives an equity-based backup for every project it constructs, which provides it with an open door from the banks and insurance companies. The tight relationship with the fund is the key to the company’s success, in light of the fact that urban renewal project are finance-intensive and require a strong financial back for quite a few years.
The Human Capital
An additional anchor of the Group is its high-quality human capital. Thus, the company employs first class professionals from every construction field, including the best planners and architects, in order to execute high-quality and successful projects. The Group’s employees and executive prioritize their commitment to executing the works at the highest level, with absolute attention to the projects’’ rights owners.
Despite the fact that the merged Group has only been operating in the field for less than three years, its projects scope is very broad, and this is the best indication of its success and substantial footprint in the urban renewal sector. Current projects under construction include: HaNotrim, Herzliya – Tama 38/1, currently pending occupation permit; Alpar, Bat Yam – Tama 38/2, pending frame completion; and a Tama 38/1 project on HaBiluyim St., Ramat Gan in the finishing stage.
Simultaneously, the company has numerous projects in planning:
1-7 Ma’apilei Egoz Tel Aviv: A unique Tama 38/1 project where 80 existing apartments would be expanded and seismic-retrofitted and 60 new apartments would be built. Construction Permit Received; HaEtzel, Holon: A Tama 38/1 project where 85 existing apartments would be expanded and seismic-retrofitted and 59 new apartments would be built; Atlit Center: A combined Tama 38 and Pinui Binui project where 200 new apartments would be built in the center of Atlit. HaMeri, Givatayim: The company won a public tender for the construction of two building under Tama 38/2; Herzog, Bat Yam: The company won a public tender for the construction of two building under Tama 38/2.
A Unique Character amongst Israeli Real Estate Companies
The integration between a development company and a company which holds a capital fund is unique in the urban renewal landscape and this enables Alad Pssagot to submit tenders both in central Israel and in more distant locations such as Hadera and Atlit. In addition, this enables the group to build project for a very broad variety of populations, with a varying pricing range that is customized for the target population.
One Stop Shop
As a company which serves both as the initiator and the constructor of its projects, Alad is a one-stop-shop in every project it executes. The company is responsible for all of the initiation and construction processes from end to end, from the land acquisition transaction and building permits proceedings, through the planning, the marketing and the construction, and up to the delivery of the key and the post-construction warranty and service for the residents.
The Company’s Executive Team
Pinhas Farkash, Co-Owner: An Ultra-Orthodox Jew and a Vizhnitzer Hasid, Owner of Farkash Initiation and Real Estate Group Ltd. – a company in the layered construction industry with extensive experience in the initiation and management of every type of project in the industry.
Yaron Pitaro, Co-Owner: Also serves as the CEO of Wealthstone REITs. Pitaro has 25 years of experience in the Israeli and global capital and investment market. He served as the Manager of the Investments Wing of Leumi Annuities, and as VP, Investments in Prisma Investment House.
Ilan Ben Yishai, Co-Owner: Also serves as the Chairman of Wealthstone REITs. Ben Yishai serves in the reserves in the rank of a major and has extensive experience in managing businesses in the tax and finance fields. He is one of the founders and owners of “Neto Financial Planning”, studied to be an accountant and has a pension insurance license.
Israel Abramov, CEO: Abramov has been managing real estate companies for more than 30 years, and in the past three years he has been the Group’s CEO.
The Company’s Vision
The Company aims to construct 3,000 apartment through Israel within the next 5 years. The company’s master-vision is to provide its customers with the best product of the highest quality, with uncompromising attention to excellence and quality, from foundations to the delivery of the keys.
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