Ruby Capital, through its subsidiary "Ruby Groups", continues to deepen its activity in the Haredi sector with two new financing deals for buyers’ groups - in Kiryat Sefer (Modi'in Illit) and Bnei Brak - together totaling around 170 housing units.
In the first project, located in the Kiryat Sefer neighborhood, the company will provide continued financing for the construction of 64 units, after the original funding, provided by the company Tarya, was halted in 2023, leading to a suspension of construction work.
About 80% of the project has already been completed, but attempts to secure alternative financing from a commercial bank encountered legal and bureaucratic hurdles. Now, through Ruby Capital, financing is being renewed in the amount of approximately NIS 45 million for a period of about a year and a half. The deal was handled by attorney Eran Mizrahi from ERM Law Office.
The second project is located in the Benedict complex in Bnei Brak, where Ruby Groups will allocate credit lines of around NIS 200 million to a buyers’ group led by the company D.S. Mgurim Israel. The project is expected to include 103 housing units and commercial spaces, with a total estimated financial scope of approximately NIS 390 million. The deal was accompanied by attorneys Cherut Ben Yair and Mai Zakai from the Gindi Caspi & Co. law firm.
More than 2,200 Haredi Housing Units - and Thousands More on the Way
Yaakov Nitzan, CEO and partner at Ruby Capital, explains: “In recent years, we have significantly expanded our activity in the Haredi sector. Today, we finance projects and buyers’ groups in the sector totaling around NIS 1.2 billion, and we are also entering selected projects as investors through Sapir funds.
"The experience we’ve accumulated enables us to handle complex legal and regulatory projects, like the one in Modi'in Illit - where all group members had already been approved for mortgages but got stuck due to a halt in financing. We are helping them complete construction up to apartment delivery.”
Ruby Capital has been operating for a decade and has become one of the key players in Israel’s real estate financing market. The company operates in cooperation with about 15 banks and institutional entities and has provided financing for the construction of over 10,000 housing units, totaling approximately NIS 25 billion.
In the equity investment sector, it operates through the Sapir funds, which have so far invested in projects involving about 3,000 housing units and approximately 25,000 square meters of logistics and commercial space.
In the Haredi sector alone, the company is involved in over 50 projects, encompassing 2,234 housing units in key cities: 1,355 in Jerusalem, 497 in Bnei Brak, and 382 in Beit Shemesh. In the buyers’ group framework, the company is financing an additional 865 units - including 256 in Modi'in Illit, 251 in Beit Shemesh, 234 in Jerusalem, and 124 in Bnei Brak.
Clal Insurance Joins: Financing Projects Up to NIS 5 billion
Alongside financing deals, a recent strategic boost occurred with Clal Insurance and Finance joining as a key investor in Ruby Capital’s buyers’ group activities. As part of this collaboration, the subsidiary “Ruby Groups” was established, specializing in guiding complex real estate deals. This move enables access to institutional credit and rapid solutions even for privately-owned groups, in projects with planning, legal, or financial complexity.
Over the past year, Ruby Groups has financed, among other projects, the land group “Hatzlachat Yechezkel” in the Elef complex in Rishon LeZion, for the construction of about 300 housing units and 2,500 square meters of commercial space. In addition, together with Meitav Investment House, it is financing a buyers’ group led by Ayala Agam in a mixed-use project in Psagot Afek, Rosh HaAyin.
In the coming year, the company plans to provide financing for additional projects with a total scope of up to NIS 5 billion, which are expected to include thousands more housing units across the country.