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Industry

Commercial Real Estate

Company Type

Opportunistic/Re-Zoning

Real Estate Fund

Size

$700M/$250M Still Available

Investment Type

Equity

OVERVIEW

Reality Group seeks $250 million from North American institutional and accredited investors to fill the remainder of its 5th fund. The first closing of this fund took place in May 2023, with approximately $450 million invested by leading Israeli institutional investors. Direct co-investments may be available.

  • Established in 2008, Reality Group is the largest real estate funds group in Israel, managing approximately $3.5 billion in private investment funds and assets

 

  • Reality Group specializes in identifying and acquiring unused and underutilized properties with significant value-add potential

 

  • Deep expertise in rezoning, the team generates value by ameliorating the planning, ownership and commercial intricacies/limitations often found in Israeli real estate

 

  • Reality contributes to urban and environmental development in collaboration with local/district/federal authorities, increasing real estate supply in Israel while having a positive impact on the environment

OPPORTUNITY

  • Israel’s economy has demonstrated great resilience in response to global financial and political crises throughout the past two decades. The country continues to experience solid economic strength, with current GDP growth of approximately 2.8% and a debt to GDP ratio of just 71%

 

  • Country is rated A1 by Moody’s and AA- by S&P

 

  • Israel has a world-leading high-tech industry, giving it the nickname “Start Up Nation” – in recent years investments in Israeli high-tech companies have accounted for 5.5% of all high-tech investments worldwide

 

  • Most remarkably (and unlike many developed countries), Israel is experiencing significant population growth, with the current level of 9.4 million people projected to reach 16 million by 2050

 

  • The country’s existing shortage in housing stock (estimated at 282,000 units) is likely to increase. Over the next decade required housing starts will likely need to double to meet projected demand

SOLUTION/STRATEGY

  • The fund acquires heavily researched properties, and builds a new narrative that brings into focus each project’s economic potential. This generally requires Reality’s extensive legal, planning and positioning/re-marketing effort and expertise

 

  • Develops extensive rezoning and other plans to maximize building rights, taking into consideration long-term public benefits, as well as the interests of local authority, the community and the developer

 

  • Active in urban and environmental development, working with authorities to increase supply in Israel, while maximizing urban development in city centers

 

  • Reality is not a construction company, leaving that part of the work to the developer/purchaser to complete – as has often happened in the past, when market conditions are favorable the company may sell a project before rezoning or other efforts have been finalized

MANAGEMENT

 Dr. Michael Vardi – Founder, Chariman


  • 40 years of experience in managing, consulting and investing in real estate, in both the public and private sectors
  • Former Head of the Israel Land Administration
  • Holds a Master degree in Operations Research and a Ph.D. in Decision-Making Processes and Risk Management 

Ohad Rozen – Founder, Managing Partner


  • 25 years of experience in valuations, strategic consulting and managing distressed companies and real estate private equity funds
  • Certified accountant and holds a BA in Accounting and Economics

Assaf Vardi – Founder, Managing Partner


  • 25 years of experience in managing and developing real estate projects with extensive expertise in high-complexity projects
  • Certified lawyer and holds an LL.B and a BA in Business Administration
Learn More About Reality Group
Thank you for your interest in Reality Group.Please fill out your information and we will contact you shortly with more information on this opportunity.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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