M&A Activity • Nov 5, 2025
M&A Activity
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To: Israel Securities Authority www.isa.gov.il To: Tel Aviv Stock Exchange Ltd. www.tase.co.il
5 November 2025
(a) New Transactions for the Acquisition of 118 Units in 9 Different Deals for a Total Sum of €18.9M
From 3 October 2025 to 4 November 2025, the company entered into exclusivity agreements for the acquisition of 118 units in the cities of Leipzig, Dresden, and Hanover for a total consideration of €18.9M (including related transaction costs).
The assets being acquired have a total area of 7,939 sqm and generate an annual rent (Shkad) of €756K (reecting an initial rent yield of 4.0%). The average rent in the acquired assets is €7.97 per sqm.
According to the Company's estimate, derived from the high quality of the acquired assets, rents in new leases for these assets will amount to about €14 per sqm on average, reecting the potential for a rent increase of approximately 76%.
Since the beginning of 2025, the Company has purchased (including assets in the process of acquisition)² 725 units for a total sum of €116.7M (including related transaction costs).
It should be noted further that most of the acquired assets are suitable for the R2C activity and are expected to contribute to increasing the potential prot backlog from the sale of apartments. The Company will commence – after completion of the acquisition of the above assets – the process of parceling out these assets as preparation for R2C activity.
Further details regarding said transactions are provided below:
From 3 October 2025 to 4 November 2025, the Company, through wholly-owned subsidiaries, entered into 9 exclusivity agreements³ with unrelated third parties (not connected to the Company or to controlling shareholders thereof), for the acquisition of 6 buildings including 71 units in the city of Leipzig, 3 buildings including 24 units in Dresden, and a building with 23 units in Hanover. The total lettable area is approximately 7,939 sqm, generating an annual rent of about €756K. The total consideration for these assets (including transaction costs), subject to signing of notarial purchase contracts and completion of the transactions, is expected to total approximately €18.9M.
It should also be noted that during October 2025, the Company completed the acquisition of 4 assets in Leipzig and Dresden, including 41 units with a total lettable area of approximately 3,140 sqm, and generating an annual rent of about €252K. The total consideration for these assets (including transaction costs) amounted to approximately €6.55M.
It is further noted that as of 4 November 2025, the Company holds (including assets under acquisition)⁴ 476 residential buildings including 5,014 residential units (97% residential usage) with a total lettable area of approximately 341,014 sqm in addition to 940 parking places.
It is further noted that as of 4 November 2025, the Company holds (including assets under acquisition)[4] 476 residential buildings including 5,014 residential units (97% residential usage) with a total lettable area of approximately 341,014 sqm in addition to 940 parking places.
Immediate report dated 8 October 2025 [reference no. 2025-01-074242]. 1
Including assets under notarial purchase contracts (legally obligating completion of the transaction) and assets under exclusivity agreements (no legal obligation to complete the transaction). 2
No legal obligation to complete the transaction. 3
This is an unofficial AI generated translation of the official Hebrew version and has no binding force. The only binding version is the official Hebrew version. For more information, please review the legal disclaimer.
As described in section 7.2 in chapter 7 (Description of the Corporation's Business) of the shelf prospectus as well as the supplementary prospectus for the company dated May 10, 2021, bearing the date May 11, 2021[5], and a supplementary announcement published by the company on May 11, 2021[6], the process of asset acquisition by the company is based on the purchase of individual properties from private investors in a large number of small transactions that are not material in scope (purchase price of €0.75–2M per transaction), each of which does not require immediate reporting (in accordance with the provisions of regulation 36 of the Securities Regulations (Periodic and Immediate Reports), 1970).
Argo Properties N.V.
By: Mr. Gal Tenenbaum and Ophir Rahamim, Co-CEOs of the Company
Including assets under notarial purchase contracts (legally obligating completion of the transaction) and assets under exclusivity agreements (no legal obligation to complete the transaction). 4
[Reference number: 2021-01-081717]. 5
[Reference number: 2021-01-082515]. 6
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11/5/2025 | 5:59:13 AM
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