Investment in Yield Properties
One of the most crucial mistakes when examining the investment in yield properties is looking through the prism of return. Focusing only on the return (the yield) from a property, which is represented by the rent it brings in, can be very misleading. It is important to understand that high rent alone cannot determine the worthiness of the investment, as low rent alone is no indication of the opposite.
The analysis of a yield property requires a thorough examination of the property and the area it is located in. Factors such as price of land, age of the property, its enhancement potential and its future value must be taken into account together with facts on the area: accessibility, future development plans, forecasted construction and more.
To these we must add information on the mix of tenants occupying the building: Is there a dependency on one or few very large tenants; what do the leases look like- are they short or long term, what collateral were tenants required to provide, were tenants offered a first right of refusal to buy the property once it is placed on the market for sale?
Clients looking to invest in yield properties in Israel or overseas will find a broad professional perspective at Yair Levy Real Estate Strategy. Our analysis and investment recommendations are based on an understanding acquired in years of experience and the closing of thousands of successful deals, rather than solely on the basis of simple factors such as return or valuation of an appraiser.
Yair Levy Real Estate Strategy is responsible for the purchase of 70,000 sq.m in the Southern Netanya industrial zone on behalf of Clal Insurance, a space which today houses the Netanya Municipality. We were instrumental in the purchase of the Amdocs complex in Ra’anana by Reit 1, Israel’s leading investment fund specializing in yield properties, and for the purchase of office buildings in major Israeli city centers on behalf of the Migdal and the Phoenix insurance companies.
Our services also include assistance in a range of financial and legal aspects in deal closing: sourcing of financing, formation of investment partnerships, tax advisory services and more.