This is a joint company owned by Phoenix, More Provident Funds and Top Capital - “The new partnership will focus on financing residential projects and providing complete financial support to real estate developers, including all their funding needs”

07.04.21 | Uri Yekutiel

A new collaboration in the field of non-bank real estate funders:  The Phoenix Insurance Company and More Provident Funds will enter into a partnership with Top Capital of the Leader Capital Market Group, as a company that will offer financial support for real estate projects in their early stages.  The joint company will focus on projects in the initial stages, offering building assistance and funding conditions.

According to the agreement, in the initial stage, the Phoenix will offer the joint company sales policy frameworks of a scope of up to NIS 2 billion.  “The Company will provide a complete financial package to real estate developers, including Sales Law policies that the Phoenix Insurance Company will issue and credit framworks for construction as senior debt and as complementary to the equity,”  written in the announcement of setting up the partnership.

“The new partnership will focus on the funding of residential projects and providing a complete financial package to real estate developers, including all the project’s funding needs under one roof.  The commercial terms for the funding of the projects will be direct competition to the terms accepted in the industry.  The new partnership promises a significant improvement to its customers in terms of speed and efficiency of the process of funding the project, from the underwriting stage and during the actual funding stage.”

Top Capital was established in 2009 by Paulie Tetro and Guy Rosen; and it is engaged in non-bank funding of real estate.  In 2017, Leader Capital Markets joined the company as a partner.  A year ago, Mickie Berger joined the Top Capital management team, after having left Bank Hapoalim after 25 years.  He is expected to manage the new joint activity.

Adv. Ronen Maor of M. Piron & Co. represented The Phoenix Insurance Company, More Provident Funds was represented by Adv. Assaf Englard and Adv. Gilad Shani, both from Hamburger Evron & Co, and Top Capital was represented by Adv. Asaf Mesika of the Yigal Arnon law firm.

Galit Tepper, Director of Project Assistance and Guarantees at the Phoenix said:  “In accordance with the strategy to empower and diversify the financial activity, of the Phoenix, Israel’s leading insurance, investment and financial group, it continues to expand activity in the real estate market and in the field of guarantors and sales law policies.  It provides strong financial backing to the joint project.   To date, the Phoenix Insurance Company has primarily assisted large projects and our joint activity with Top Capital and More Provident Funds is designed to complete the range of projects for which the company provides solutions in the Israeli real estate market.”

The founding partners in Top Capital, Guy Rosen and Paulie Tetro responded:  “Our new partnership with two strong institutions such as the Phoenix and More Provident Funds will help establish Top Capital as one of Israel’s leading non-bank real estate funders, both due to the significant credit sources at the company’s disposal and which enable it to expand its investments, and due to our ability to offer a real alternative to developers in terms of  funding projects in the early stages.” 

Ori Keren, Partner and Chief Investment Officer at More Provident Funds said:  “Assuming that the real estate market will continue to be a healthy sector in the mid-term range, we have chosen to join the Phoenix Insurance Company and Top Capital in the field of financial assistance for real estate projects in their early stages.  We wish to establish activity that will be in line with our strategy to distribute and diversify investments.”