US residential real estate company Flow, controlled by Adam Neumann and US venture capital firm Andreessen Horowitz, has been allocated 30% of the shares of income-producing Israeli real estate company Canada Global (TASE: CNGL), controlled by Israel Canada (TASE: ISCN). Controlling shareholders Assaf Toshmir and Barak Rosen.
Neumann, who founded co-working space company WeWork, which collapsed in August 2023, continues to invest in a range of areas. Flow describes itself as “a residential real estate brand that is changing the future of housing,” although there are not many details about the project beyond reports on US media websites.
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Flow will acquire 25% of Canada Global shares for NIS 85.1 million at a price of NIS 6.01 per share, a 22% premium to the market price before the start of trading this morning). Flow is also buying another 4% stake at the same share price for NIS 13.5 million. Also investing in Canada Global is co-founder and CEO of cybersecurity company WIZ, Assaf Rappaport, who will buy shares worth NIS 3.4 million.
The deal reflects a company valuation of NIS 252 million, before money, for Canada Global, and NIS 340 million, after money, twice the market value of the stock when the stock began trading this morning. Canada Global Chairman and CEO Asaf Touchmair will continue as CEO.
A collection of more than 4,000 apartments in the United States and Saudi Arabia
Neumann founded Flow in 2022 with a private investment of $350 million, along with another $350 million from Andreessen Horowitz. Flow describes itself as “changing the living experience as a property owner, operator and innovator of integrative technology. By prioritizing high-end buildings, advanced operations and a vibrant community, Flow not only provides apartments, but fosters connected living, where individuals feel valued, supported and empowered to achieve their full potential.” The company owns a portfolio of more than 4,000 upscale apartments and residential buildings (Class A), in four cities in the United States and the Kingdom of Saudi Arabia.
Newman said: “Investing in Canada Global strengthens the strategic cooperation between it and Flow to create and develop world-class real estate projects outside Israel, starting with the United States.”
Assaf Toshmir and Barak Rosen said: “We plan to apply our existing capabilities, bringing the extensive experience gained over 30 years, along with the capabilities of creativity, planning, marketing, and opportunity creation, and develop Global Canada as a brand in its own right, which will see us become the real estate arm of the group outside of Israel.” .
Published by Globes, Israel Business News – en.globes.co.il – on September 29, 2024.
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