Buyer’s Price Program – project financing in the State of Israel’s flagship program

WG – Buyer’s Price is a real estate development company engaged in the Buyer’s Price Program while specializing in project financing through limited partnerships in which it serves as a general and managing partner, and each partnership invests in the process of the Buyer’s Price Program in Israel.

 

WG – Buyer’s Price specializes in locating and financing projects within the format of the Buyer’s Price Program. It starts from the stage of posting the guarantees for tender participation, equity financing for purchasing the land, and building.

 

WG – Buyer’s Price finances projects through limited partnerships, in which it serves as the general and managing partner, while each partnership invests in various projects of the Buyer’s Price Program.

 

The investors’ funds are deposited in the trust accounts of the limited partnerships in which only the trustee is the sole authorized signatory. As befits the professional process of the Buyer’s Price Program.

 

About the Program – Buyer’s Price Program

 

Goals of the Program

 

  • Increasing the country’s housing supply.
  • Assisting young couples without housing purchase their first apartment with preferential conditions.

 

Stages of the Buyer’s Price Program

 

  • Marketing residential units to developers through the Israel Land Authority and the Ministry of Construction and Housing.
  • Approving apartment areas and prices by the Ministry of Construction and Housing.
  • Publishing registration dates for the project by the construction companies.
  • Conducting a computerized lottery at the Ministry of Construction and Housing and sending the result of the lottery to all participants.
  • Sending notices to the winning applicants and inviting them to choose an apartment and sign the contract.

 

Important to Know – Buyer’s Price Program

 

  • The State markets land at a reduced price in exchange for guaranteeing a low price in marketing the apartments to be built on the land – the competition is over the lowest price per m2 for which the developer sells the apartments.
  • The price of the apartment is set by the winner’s price multiplied by the m2 area of the apartment.
  • The specifications of the apartments are according to the standard specifications of the Ministry of Construction and Housing.
  • Marketing of the apartments is done in advance by the state and at one time immediately upon reaching a decision by the committee for approving building permits.

 

Advantages of the Investment

WG CAPITAL has unique protection mechanisms, thanks to which the investors benefit from limited exposure to risk, full transparency and relative security that is given today in the alternative investment world.

 

  • The investor as a limited partner – Wealthstone Rain Capital manages investments through an association of investors under a limited partnership that is registered with the Registrar of Partnerships for predefined period, while Wealthstone Rain Capital serves as the general-managing partner.
  • Trust – The funds of the investors are transferred to a bank account owned by the partnership in which the trusts company serves as the trustee and sole authorized signatory for the bank account. Additionally, to the extent required, the trustee has the discretion to initiate any legal proceeding against the developer pursuant applicable law.
  • Portfolio Diversification – Exposure of the portfolio to investments in non-negotiable assets and reduction of standard deviation in the overall asset portfolio.
  • Investment Diversification – Each partnership invests in 1-3 projects, with various risk levels as required – according to the cost of the projects and the capital required for financing them.
  • Priority of Returns and Interest Tax – Priority and preference of the investment’s repayment to the investor and always before distribution of profits to the developer and managing partner and repayment by the permit partnership of the Additionally, management and operating fees are charged to the developer so that the priority return reflects the expected return of the investor. In addition, the investor’s profits are subject to interest tax only pursuant to an expert opinion from PwC (Kesselman & Kesselman).

Full Transparency – A report will be sent to each investor, including the status of the financial investment, as well as the progress of projects relevant to each partnership

WealthStone Investment Philosophy

Asset Diversification

WealthStone invests in a number of projects in every limited partnership

Attractive Markets

Wealthstone finance dozens of projects in Gush Dan, The Sharon and Jerusalem -the projects are located in the most attractive places in Israel

Investment Committees

Each investment is carefully examined by a dedicated Investment Committee, comprised of the best professionals in the relevant fields. These committees are an integral part of WealthStone consulting, supervision and fund management process

Securities

WealthStone puts investors at first priority when it comes to distribution of yields. In addition, WealthStone assures that the best securities to protect investors are activated in each investment strategy used, according to what is customary in the relevant investment field

Supervision and Control

WealthStone keeps a dedicated team responsible for supervising and monitoring investments in the various funds on a regular basis

Close Escort

All WealthStone funds are accompanied by a Trustee, a CPA and, if necessary, an Administrator

Disclaimer

The information on this website does not constitute an offer to invest in the fund or an invitation to receive offers for investing in the fund, does not constitute a basis for reaching investment decisions, does not constitute a recommendation and/or opinion and is not a substitute for the discretion of potential investors. In addition, the information included herein is not a substitute for professional advice from a licensed professional taking into account all of the client’s needs and does not constitute a substitute to tax advice. The information in this website does not constitute an offer of securities. The securities of the various funds are not listed and shall not be listed for trade and they are offered to investors by private offer to a limited number of offerees as set forth in the Securities Law. Engagement under an' investment agreement is subject to absolute discretion of the general partner

For more information