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Galil Capital Raises Financing Worth €4.5M to Continue its Growth

Posted by: In: Real Estate 13 Jul 2018 Comments: 0 Tags: , , , , , , , , , , ,
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12 July 2018 – Eje Prime

A larger cushion for Galil Capital’s growth plans. The Socimi has signed a double operation to raise more funds. On the one hand, the company has signed a bank loan amounting to €2.5 million and, on the other hand, it has agreed a €2 million loan with its majority shareholder. “With these operations, the company is strengthening its financial capability to fulfil its strategy of new real estate acquisitions and capex projects”, say sources at the company.

The mortgage loan amounting to €2.5 million will have to be repaid in 2038 and has a one-year (repayment) grace period. The agreed interest rate amounts to 2.1% until July 2019 and will revert to Euribor plus 2.1% for the remainder of the period, according to a statement filed by the company with the Alternative Investment Market (MAB). By way of collateral for the loan, Galil has granted a mortgage right over the property that it owns at number 23 Calle Bejar in Madrid.

The loan from the majority shareholder, amounting to €2 million, will have to be repaid in December 2019 and the interest rate, in that case, amounts to 3%. The company is led by Jerry Mandel, a former executive of Merrill Lynch, but the majority shareholder is Gil Avraham Shwed, who controls 54.81% of the share capital.

Galil Capital owns a portfolio comprising six properties, all of which are residential use buildings located in Madrid and Barcelona. The valuation of the six assets amounts to €31.36 million.

The Socimi’s plans when it debuted on the MAB involved carrying out two acquisitions during the course of 2018. Nevertheless, the Socimi has not undertaken any operations during the first half of the year.

The company is looking for residential buildings in Barcelona and Madrid, above all small and medium-sized buildings (with between ten and fifty assets per building), although it does not rule out investing “at least 25% of its funds in commercial assets in Madrid and Barcelona as well as in properties outside of those two cities”.

Original story: Eje Prime

Translation: Carmel Drake

The post Galil Capital Raises Financing Worth €4.5M to Continue its Growth appeared first on Aura Real Estate Experts.

Source:: AURA Real Estate Experts

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