Israeli Fund Galil Capital Injects Funds into its Spanish Socimi

17 May 2018 – Eje Prime

Galil Capital wants to grow in Spain and, to that end, is giving a boost to its Socimi with a capital increase amounting to €200,000. The Socimi, controlled by the Israeli businessman Jerry Mandal, former director of Merril Lynch, has included this matter on the agenda for its next General Shareholders’ Meeting, convened for 21 and 22 June, according to a statement filed by the listed company with the Alternative Investment Market (MAB).

Created in 2015, the Socimi invests in residential properties in Madrid and Barcelona. Its assets, which, in many cases, also include commercial premises, mean that the company had a valuation of €20.5 million on the day it made its stock market debut. Galil Capital rang the bell on the MAB on 28 February with a portfolio comprising four entire buildings in Barcelona and a fifth in Madrid.

In the Catalan capital, the Socimi owns properties in the Eixample, Gótico and Gràcia districts. Specifically, the real estate company has two assets on the central streets of Calle Corsega and Unió, and the other two are located in the high part of the city, on Calles Bretón de los Herreros and Aulestia i Pijoan.

The only asset that the Israeli fund owns in Madrid contains 44 homes and two commercial premises. That property, located on Calle Granada, is not expected to be the last one acquired by the Socimi, which is now increasing its share capital through the issue and placement into circulation of 20,000 new shares.

The businessman who is leading Galil in Spain, Mandel, is the founder and owner of GC Nadlan, the company that manages the real estate company. An industrial engineer, the multi-millionaire Israeli is also the CEO of GC Florida Group, a company through which he invests in the second market in which he has a presence, the USA.

Nevertheless, the Israeli executive does not hold more than 14.1% of the shares in the Spanish Socimi. Mandel directs the investments with the trust of a group of primarily Israeli businessman, including Gil Avraham Shwed, who owns 56.4% of the company’s shares.

Gil’s commitment to Spain reflects the forecasts that the company itself has for the country, where it predicts that “real estate prices are going to rise by between 20% and 30% over the next few years”.

In addition to this Socimi, in recent years, Galil Capital has created up to five investment vehicles in the state of Florida in the USA to “take advantage of the recent crisis in the residential real estate market” in the region. Mandel and his team even have a line of business that is separate from real estate through which they provide financial advice to Israeli companies in the process of listing on the Nasdaq.

Original story: Eje Prime 

Translation: Carmel Drake