Amot Investments Ltd.
Income Yielding Real Estate Investments
About Amot Investments Ltd.
Amot Investments Ltd. is a leading Israeli publiccompany in the income-generating real estate sector. Its’ biggest shares’ holder is Alony-Hetz Properties and Investments Ltd. Amot manages, leases, maintains, initiates and develops income-generating properties in Israel. In May 2006, Amot listed its securities for trading on the Tel Aviv Stock Exchange (“TASE”) and by March 31, 2020, has raised NIS 12 billion from issuances on the TASE. In addition, during this period, Amot distributed dividends totaling NIS 3.3 billion.
Amot owns 104 properties, leased to some 1,700 tenants, covering a total area of 1.5 million square meters, including 567 thousand square meters of parking space. The properties include offices and hi-tech buildings, industrial parks, logistics centers, shopping centers and malls, supermarkets, and central bus stations. Amot’s properties are valued at more than NIS 13.5 billion, and the occupancy rate of the properties is steady and stable around 97.6%. Most properties are located in greater Tel Aviv (Gush Dan Region), in large city centers and in high-demand areas.
Business Strategy and Key Properties
Amot is striving to expand its operations in Israel’s income-generating real estate sector by acquiring existing properties while initiating and developing newer properties. Amot’s properties are multi-use - 53% of the value of real estate is in offices, 18% is in industrial use and logistics, 21% is in commercial use, while 6% of the value of real estate is a cluster of 36 supermarkets which are located in city centers.
Among Amot’s most outstanding properties are the ToHa1 building in Tel Aviv, the Amot Atrium Tower in Ramat Gan, 30 Ha’Barzel Street in Ramat Ha’Hayal, Amot Investments Tower, Beit Amot Mishpat Complex, Amot Insurance Complex (all in Tel Aviv), Pelephone House in Givatayim, Amot Platinum Tower in Petah Tikva, Arim Mall in Kfar Saba, B7 commercial center in Be’er Sheva, Kiryat Ono Mall, Orot Mall in Or Akiva, logistics centers in Modi’in, Shoham, Ariel and Airport City as well as industrial properties in Lod, Caesarea, Be’er Sheva and Netanya, and the Jerusalem Central Bus Station.
Entrepreneurial Projects under construction, projects under development and land reserves
Amot has five projects currently under construction. Amot’s share in these properties is 140 thousand square meters above ground, and Amot’s total predicted investment in the projects is NIS 1.8 billion. The rest of the Company’s predicted investment in future years is NIS 1.2 billion.
Amot Holon - In July 2016, the Company won a tender issued by the Holon Municipality for the construction of an office and commercial project in the Holon industrial zone. The project is part of a combination deal with the Municipality. The project is being built on 11 dunams and will offer a 20-story office tower above commercial space, a leasable area of 56,000 square meters and an underground parking of 5 stories. The project is under construction and is expected to be completed during 2021.
Logistics project and office building in Modi’in - An automated logistic center for Shufersal’s online operations. In May 2018, Amot signed an agreement with Shufersal Ltd. whereby it sold to Shufersal 25% of the land’s rights, on which the parties are jointly building, a logistic center and an additional office building. At construction end, the logistics center will be leased to Shufersal for a period of 15 years. The 43,000 square meter logistics center is finalizing its foundation construction and beginning its roofing and is due to be delivered to the tenant (Shufersal) in July of 2020. The 9,000 square meter office building is finalizing the parking basement’s foundation construction (the Company’s share in the project is 75%).
The Lehi Complex in B’nei Brak - In 2018, Amot signed an agreement to acquire half of the rights from Allied Real Estate Ltd. to 16.4 dunams on Lehi Street in B’nei Brak. The land is located in the northern business district of B’nei Brak, adjacent to Hayarkon Park, the Ramat Ha’Hayal complex and close by the Ayalon Mall, as well as to a train station and a planned light rail station. The parties are jointly working to plan and build an employment and commercial project on the land, which will include 75,000 square meters above ground. The reinforcement work of the project has been finalized and digging and support work is being done.
The 1000 Complex in Rishon Le’Zion - In June 2018, Amot won a tender for the acquisition of land in the 1000 Complex in Rishon Le Zion West. The tender awarded rights to build 19,000 square meters. The project is now in advanced planning stages.
ToHa2 parking construction (Totzeret HaAretz complex) – The partners are working to construct a parking lit at the Totzeret HaAretz complex, phase 2. As of the report date, the roofing work has been finalized and digging has commenced.
The Company has 3 medium term (3-8 years) planning and entrepreneurial projects. A decision pertaining to construction has yet been made. The Company’s share in them 115 square meters above-ground, and the predicted investment scope in future-years projects is NIS1.4 billion (the Company’s share). Construction costs include the land component, as well as parking basements, and does not include tenant adjustments and capitalization. In addition, the Company holds land reserves for initiation and development, on which it initiates projects, gradually, in accordance with an ongoing examination and analysis of the market situation and the demand. The Company is also promoting plans for construction and improvement of several additional properties.
Financial Strength and Reputation
Amot believes that the critical factors for success in the field of income-generating real estate are knowledge and experience in marketing, management, operation, asset betterment, rapid and reliable response to tenant needs, reducing risks by spreading to several geographic areas and diversification of property types, financial strength, full transparency to the capital market and to the public, locating of business opportunities and rapid and decisive response.
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