Real Estate Sector

Buyer’s Price (Machir Lamishtaken) / ILA Transactions

Transactions that include a land acquisition stage, usually with a cash component

• Credit to finance the purchase of the land, and particularly the VAT component
• Financial guarantees or performance bonds for the Ministry of Construction & Housing or the Israel Land Authority (ILA), according to the terms of the tender
• Payment vouchers for the residential units within the project
• Collateral under the Sales Law
• Credit to finance the construction process (usually bridge loans)

Combination

Cooperation between a developer and landowners for the purpose of establishing a residential project

• Collateral under the Sales Law in the value of the landowners’ apartments
• Financial guarantees regarding the developer’s obligations to the landowners
• Credit to cover the tax liability of the landowners
• Credit to finance the construction process

Vacate & Build / Build & Vacate

Large-scale urban renewal, involving vacating and demolishing existing buildings, and constructing and occupying new buildings

• Collateral under the Sales Law in the value of the landowners’ apartments
• Financial guarantees regarding the developer’s obligations to the landowners
• Credit to cover the tax liability of the landowners
• Credit to finance the construction process
• Collateral under the Sales Law (also in respect of construction services)
• Payment vouchers for the residential units within the project

• Combined Transactions

  • Combining several types of real estate transactions, such as: a combination transaction that includes individuals and/or construction services/transactions (gross/net) due to their legal and engineering complexity

Purchasing Group

• Credit to group members for the purpose of completing the construction process
• Financial guarantees or third party performance bonds

Tama 38 (all types)

Reinforcement and expansion, demolition and construction

• Credit to finance the construction process
• Collateral under the Sales Law
• Performance bonds
• Collateral under the Sales Law in the value of the owners’ apartments
• Financial guarantees regarding the developer’s obligations to the owners
• Payment vouchers for the residential units within the project