Ynet

Electra Real Estate, owned by the Salkind brothers, has reported that it will enter the hotel industry for the first time, in the United States in the first stage, by means of a partnership with the local hotel chain, AKA, of the Jewish Korman family. "Market uncertainty has created significant investment opportunities"

By Navit Sommer

Published on January 31, 2021

After acquiring the Globus cinema chain, Supergas and Afikim, the controlling shareholders of Elco, the brothers Danny and Mikey Salkind, also want hotels. Electra Real Estate, which they control, reported today (Sunday) to the stock exchange that it will enter the hotel business for the first time, at a first stage in the United States. The company intends to take advantage of opportunities in the industry that was hit hard by the corona pandemic and invest hundreds of millions of dollars in the acquisition.

For this purpose, Electra Real Estate has entered into a local partnership in the United States – with the AKA hotel chain of the Korman family (which is Jewish), and which has over 100 years of experience in the real estate and hotels sector.

A notification to the stock exchange states: "The leverage of the distress in the tourism market and the market failure that arose due to the uncertainty in the markets, have created, in the company's opinion, significant investment opportunities, reflected in attractive prices of hotels located in central locations across the United States.

The business model for purchasing hotels is expected to be implemented through partnerships and investment funds, similar to the current investment model in which Electra Real Estate operates in the sectors of housing clusters which it has acquired in the United States. The company, together with the local partner (in a limited partnership), will operate to raise funds for the purchase of the hotels.

As one may recall, in December 2020, Electra Real Estate announced that it was considering entering the field of complementary activities in relation to private rental homes - in the southeastern part of the United States, which is characterized by high immigration and positive employment data. This is in addition to the "multi-family" housing clusters that the company is operating in the United States.

The company reported a net profit of 27.3% in the third quarter of 2020, amounted to about NIS 34.8 million. For the first time since 2008, the company distributed a dividend to shareholders in the amount of about NIS 8.7 million.

In the last three and a half years, Electra Real Estate has raised more than $ 1.5 billion by means of four investment funds. The company currently manages about 33,800 housing units in 103 housing clusters in the United States.

It should also be noted that the Salkind brothers are currently in advanced negotiations to obtain an Israeli franchise for the American convenience store chain, "Seven Eleven".