Gamla Millenium Residential

Gamla-Harel Residental Real Estate Ltd. works with developers and builders on the development of residential real estate projects in Israel. Gamla-Harel Residental Real Estate Ltd. provides shareholder financing to help developers receive the necessary financial support from banks for residential real estate projects.

Shareholder financing is a relatively new field in Israel, that has gained momentum in recent years. Most real estate developers today rely on bank loans for financing. According to this method, the bank and the developer sign an agreement for financial assistance that determines the project's conditions, the necessary guarantees and the situations in which they may be used. All of the project's revenues are deposited in a special bank account that is controlled by the bank, while at the same time sale guarantees are issued to the purchasers of the apartments. As the project's building progresses, the bank "releases" capital for financing the project's costs.

In order to receive a bank loan from the banking system, developers must put up some of their own capital in the amount of 20%-40% of the cost of the project. This equity is used by the lending bank as a "safety net" to secure its financing for the project.

Gamla-Harel offers developers the "safety net" that is needed in order to secure a bank loan. The developer is provided with the capital capital in the following formats:

• Depositing cash capital in the borrower's bank account.
• Providing a bank guarantee for the lending bank.
• The developer may select the manner in which they will receive the financing.

This shareholder financing is conditional upon the amount that the bank is lending for the project. Gamla-Harel cooperates with most of the commercial banks.

To find out more about shareholder financing, or to receive additional material related to the company's activities, click here