Investing in Israeli real estate with intelligence and impact

Overview of the FONDASION real estate investment fund

Dear partners,

We are pleased to present FONDASION, an Israel-based real estate investment fund dedicated to participation in high-potential urban renewal projects. The fund is aimed at investors seeking access to exclusive off-market opportunities usually reserved for institutional investors.

Why is real estate in Israel a more than ever opportunity?

Israeli real estate presents a unique structural attractiveness, fueled by continuous demographic, economic, and social dynamics:

  • Constant organic growth: each year, the Israeli population naturally increases, generating an ever-stronger demand for housing.
  • A structural need for 120,000 new housing units per year to meet demographic growth, evolving family structures (particularly high birth rates in certain communities, increasing divorce rates), and the constant arrival of new immigrants (Aliyah).
  • Limited capacity to build new housing: despite efforts, Israeli bureaucracy and construction industry allow, even in the best years, the construction of only +60,000 units per year.

This creates a chronic deficit of approximately 50,000 to 60,000 housing units per year, which fuels constant market tension, favoring price increases and demand stability.

In Israel, every bank-financed real estate project must meet two conditions:

a. Present a minimum profitability of 20% to be financed.

b. The developer must invest at least 20% of the project amount from their own funds. This concretely means that on average, a developer doubles their invested capital – that’s 100% return on equity. With real estate projects averaging 4 to 5 years in duration, this translates to an average annual return of 20 to 25% on invested capital.

It is this ground reality, known to all professionals, that we make available to you.

At the heart of this dynamic, urban renewal projects (Tama 38, Pinouy Binouy, etc.) represent an exceptional opportunity for investors:

  • Prime location: these projects are established in city centers, in already established neighborhoods, with all existing infrastructure: shops, schools, parks, synagogues, cultural centers, medical clinics.
  • Highly sought-after apartments: demand for these housing units is immediate and sustained, and units often sell before construction is even completed.
  • No land to purchase: the developer generally doesn’t need to buy the land, which significantly reduces the overall cost of the project.
  • High profitability and shortened timeframes: projects benefit from substantial margins and reduced implementation times, thanks to the existing urban infrastructure. This combination – location, efficiency, profitability – is what drives us to consider urban renewal as the “startup” of real estate: an intelligent, fast, and sustainable solution to meet the country’s growing needs.

The FondASion fund: a privileged access to premium opportunities

The fund gives you access to:

  • Selected real estate projects,
  • The country’s main developers,
  • And strategic partnerships, including a company managing nearly 15,000 apartments under development, associated with one of the 5 largest banks in Israel (20% of the capital).

It is this level of experience and professionalism that makes this fund unique

A guaranteed return and a performance-indexed bonus

A guaranteed minimum return and a bonus indexed to the performance of carefully selected projects.

Our objective: to help you achieve double-digit returns, annually, within a secure and transparent framework.

  • Fund duration: 48 months (4 years), with possibility of extension for 12 months, meaning 5 years. Thanks to multi-project management, some investments may mature more quickly. We have implemented a system of capital repayment and interest payment by preemption for the benefit of investors.

A flexible and optimized legal framework: the "Limited Partnership"

FONDASION is structured as a Limited Partnership, a legal framework strictly regulated by Israeli law, under the supervision of the Israeli Securities Commission. It is a very widespread legal model in Israel in the fields of high-tech and real estate. It allows partners with varied tax and legal statuses to come together around the same project: individuals, companies, olim hadashim, foreign or local investors.

This format preserves the independence of each partner while offering them collective negotiating power, risk sharing, and access to large-scale projects.

The structure includes:

• A GP (General Partner): fund manager, responsible for strategy, monitoring, and execution.

• LPs (Limited Partners): investors like you, whose liability is limited to the amount invested.

FONDASION

Eligibility assessment

In order to ensure maximum protection for investors, Israeli legislation distinguishes between two categories:

  • Accredited investors (משקיעים כשירים / Accredited Investors): considered experienced, with no restriction on numbers within the investment framework.
  • Non-accredited investors: their number is limited to a maximum of 35 people per operation, otherwise the investment is considered public and must be declared to financial authorities as a stock market offering. The FONDASION fund opens the doors to a solid, high-performing, and secure sector. You now have the opportunity to invest like institutional investors, in profitable, concrete, and structured projects, while maintaining individual flexibility.

Raphael Perez Adv.

Determine your Investor Status

Conclusion:

FONDASION opens the doors to a solid, high-performing, and secure sector. You now have the opportunity to invest like institutional investors, in profitable, concrete, and structured projects, while maintaining individual flexibility.
Join us to build together a more stable, profitable, and sustainable future.

The FONDASION team – Raphael PEREZ adv.

The collection of capital for investments is carried out in accordance with the provisions of the Securities Law 5728-1968. Consequently, PEREZ & CO – LAW FIRM AND TRUST LLC or its assigns (hereinafter: “the Company”) does not commit in any way that it will be able to meet all investment requests from all or part of the investors who will announce their willingness to examine or participate in the investment. The Company undertakes to comply with the restrictions prescribed by law, regarding information it may disclose at the various stages of investment review and the criteria it will determine from time to time (and possibly for each investment separately) in order to raise the required capital and in accordance with the provisions of the law.

In short, after the Company has established the feasibility of a new investment and after the initial verifications (or others) based on its expertise, it will publish (to the extent it deems appropriate) the general publication of its investment intention. Initially, a general publication, not including financial data (in accordance with the provisions stipulated by law), and the details of the offer, including price, interest and expected return.

To the extent that the Company receives offers from more than 35 interested persons, the Company will establish its own criteria (which will be determined particularly according to the nature of the investment, the anticipated amount of investment, the risks and prospects related to the investment, the investor profile, the expected duration for the investment, etc.). This is for the purpose of filtering requests to participate in the investment, and to not exceed the 35 subscribers imposed by the Law.