Aura Signs Agreement to Acquire Beit Bakfar for About NIS 1.7 Billion
Key Facts
Aura said on October 26 that it had signed an agreement to acquire full ownership of Beit Bakfar, which is controlled by the Blustein family, for about NIS 1.7 billion, according to Bizportal coverage. The deal begins with the purchase of the controlling stake, about 55% of the share capital, for about NIS 935 million in cash, at NIS 24.31 per share. Aura plans to make an offer to the remaining shareholders at the same price, with consideration split between cash and Aura shares. Beit Bakfar will therefore not become wholly owned as soon as the agreement is signed; that depends on completing the offer and transaction and delisting its shares. The deal gives Aura, known for its real estate business, an entry into Israel's senior protected housing sector, with an existing operating portfolio and development projects.
The offer for the remaining shares provides for 30% of the consideration to be paid in cash and 70% in Aura shares, with the shares allocated to shareholders expected to represent about 8.8% of Aura's share capital after issuance. The company expects the transaction's total cash component to reach about NIS 1.15 billion, alongside about NIS 550 million to be paid in its shares. The share pricing is based on an agreed valuation of NIS 5.5 billion for Aura. This structure makes part of the acquisition cost cash-funded, while allowing the remaining shareholders to participate in the buyer through shares. The expected issuance also means Aura's existing shareholders' stake will change after the shares are allocated, while completion of the deal remains tied to meeting its conditions.
Beit Bakfar recorded revenue of about NIS 109.6 million in 2025, net operating income of about NIS 72.4 million and operating cash flow of about NIS 31.7 million. In the first half of 2026, revenue rose to about NIS 59.8 million, up 11% from the same period a year earlier. Net operating income in the first half was about NIS 39.3 million, while operating cash flow came to about NIS 16.7 million, up 31% year on year. These results provide a picture of an operating business generating revenue and operating cash flows alongside expansion projects. However, occupancy across the network's complexes was about 88% in the second quarter of 2026, compared with an average of more than 90% in 2025.
The development plan includes 249 units in Be'er Ya'akov, 300 units in Modi'in and 335 units at Kibbutz Usha. The Usha project is completing planning procedures, while other projects remain at different stages of development; therefore, the units are spread across projects at different stages and are not all ready for operation. Beit Bakfar's interim report expects construction of the Modi'in project to be completed in the fourth quarter of 2029, while it does not specify an expected completion date for construction at Usha. The company has also completed an expansion in Kfar Saba and begun occupancy of its units; it had sold about 80% of the project's units as of the interim report date. These projects show a mix of existing operations and expansions that require time and procedures before they become occupied units.
The interim report says net debt, including residents' deposits, was about 18% of total assets on June 30, 2026. In addition, 39% of resident agreements use a rental or similar arrangement, which does not require an advance deposit or the sale of the resident's home. The report said average occupancy had exceeded 88% in recent years, and that Maalot granted the company an ilA issuer rating in 2025 and affirmed it in March 2026. The difference between the average occupancy cited in the report and the second-quarter rate reflects different reference periods: the latest 88% rate relates to the second quarter of 2026, while the interim report refers to the average in recent years. The report also said the Bank of Israel's interest rate was 3.75% when it was published, with an average rate of 3.0% expected in the second quarter of 2027.
The two stocks moved in opposite directions in trading on October 26, with Aura shares falling 6.6% and Beit Bakfar shares rising 50.11%, according to a market report published by Bizportal. The moves came on the day the agreement was announced, before its conditions are completed and the required approvals are obtained. The parties agreed to a period of 180 days to meet the conditions precedent, with the option to extend it by an additional 60 days. The conditions include the approvals required for the purchase offer, approval from Beit Bakfar bondholders, and approval from the Competition Authority or an exemption from it. Completion of the acquisition remains subject to these requirements being met and the offer for shares held by the public being completed.