Leumi Tower, 2021 file: נדב ס / Wikimedia (CC BY-SA 4.0, cropped)
Leumi Partners is investing $100 million in U.S. real estate investment manager Harbor Group in a deal that implies a company valuation of about $1.275 billion.
The transaction gives Bank Leumi’s investment arm an option to buy additional shares at the same valuation. Exercising that option would bring its stake to 10%.
The investment is in Harbor Group’s management business, rather than a purchase of individual properties. It gives Leumi Partners exposure to the platform’s existing operations and its plans to expand.
Harbor Group manages about $22 billion in real estate assets, with a focus on U.S. rental housing and commercial properties. Its activities include buying, improving and managing income-producing real estate, as well as credit financing for commercial property acquisitions.
The firm aims to increase assets under management to $60 billion in the coming years, making expansion of the platform part of the investment case.
Harbor Group was founded in 1985 by Jordan Slone, who serves as chairman and chief executive. Slone led the transaction for Harbor Group opposite Leumi Partners CEO Victor Vakrat.
The investment was reported Wednesday. It marks a move by Leumi Partners into a U.S. property-management platform after a series of investments in Israel.
JBizNews Desk | Tel Aviv
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