Aura continues to show confidence: Buys additional Megido shares (formerly Amram et Nidam) amid massive project pipeline

Controlling shareholder Aura Investments increased its stake in the urban renewal company shortly after Megido presented a ₪35 billion project pipeline. The move signals confidence in the company's long-term strategy.

Aura Investments, controlling shareholder of Megido Y.K. (formerly Amram et Nidam Urban Renewal), purchased additional shares in the company for approximately ₪1.2 million, raising its holding to 77.63%. The purchase, executed under a previously announced buyback plan, signals confidence in Megido's massive project pipeline, which comprises roughly 28,000 housing units with expected revenues of approximately ₪35 billion and potential gross profit of about ₪6.5 billion.

Aura Investments, controlled by Yaakov Atrakchi, continues to express confidence in its subsidiary Megido Y.K. Ltd. (formerly Amram et Nidam Urban Renewal). According to a filing, Aura purchased an additional 185,720 shares in Megido for approximately ₪1.2 million, raising its ownership stake to 77.63%. The move comes shortly after Megido presented a comprehensive investor presentation showcasing a massive project pipeline, signaling the parent company's confidence in its operational potential.

The purchase was carried out under a share buyback program announced by Aura earlier this year, reinforcing its message to investors following recent impressive figures. Megido, a prominent player in Israel's urban renewal sector, disclosed in its investor presentation a project pipeline spanning 66 sites, with potential to construct approximately 28,000 new housing units—the vast majority under the "Pinui-Binui" (demolition and reconstruction) model.

₪35 billion project pipeline

According to the presented data, expected revenues across all pipeline projects stand at approximately ₪35 billion, with potential gross profit estimated at around ₪6.5 billion. These figures highlight the significant scale of the company's operations and the long-term visibility provided by its project pipeline, visibility that likely supports Aura's decision to continue increasing its stake.

Pipeline breakdown: From tenant signatures to execution

An analysis of project pipeline stages from the presentation indicates that the bulk of activity remains in relatively early phases, securing a long-term project pipeline for years ahead. Roughly 17,000 housing units (about 60% of the pipeline) across 38 different projects are currently in the tenant signature collection stage. This phase forms the foundation for project launch, though it involves lengthy and complex processes.

At more advanced stages, the company has 10 projects comprising approximately 3,000 housing units in detailed planning or approaching building permit approval. These projects are expected to serve as the company's primary medium-term growth engine. Additionally, 5 projects comprising about 1,500 housing units are under active construction, while 3 projects comprising 525 housing units have already been occupied.

Strategic focus on high-demand areas

Megido's strategy, as reflected in the presentation, clearly focuses on Israel's high-demand areas. Key cities where the company operates include Tel Aviv, Givatayim, Ramat Gan, Bat Yam, Jerusalem, and Netanya. Concentrating operations in these areas—characterized by high land values and robust housing demand—forms the basis for the company's profit potential. The company's business model relies almost entirely on Pinui-Binui projects, which are considered more complex to execute but carry higher financial potential compared to TAMA 38/1 (reinforcement and extension) projects. Aura's additional share purchase underscores confidence in this strategy and Megido's capability to realize the potential of its project pipeline.