Adam Neumann’s new real estate company Flow announced on Sunday the purchase of 30% of the Israeli real estate investment company Canada Global, owned by Israeli businessmen Assaf Tuchmair and Barak Rosen, for around $27 million. The purchase is made at a post-money valuation of about 340 million NIS (approximately $92 million).
Following the transaction, controlling owners Tuchmair and Rosen will hold about 60%, Flow will hold about 30%, while Assaf Rappaport, co-founder and CEO of Wiz, and the public will hold the remainder. Rappaport acquired 1% of the company.
Canada Global is currently inactive and exists as a shell company on the stock exchange, which Tuchmair and Rosen purchased from the Aviv family. The plan is to integrate residential apartment operations in Florida into the shell company, which is currently traded on the Tel Aviv Stock Exchange at a value of about 167 million NIS ($45 million). The company’s pre-transaction value, based on a price of 6.01 NIS per share reflected in the proceeds of each transaction component, stands at approximately 252.5 million NIS.
As part of the partnership between the parties, Flow will be responsible for asset management, including day-to-day operations and wellness-focused living experience for property owners. Tuchmair will serve as the company’s CEO.
Flow was co-founded by Adam Neumann in 2022 alongside a $350 million investment from Andreessen Horowitz.
“The investment in Canada Global establishes a strategic collaboration between the company and Flow to create and develop world-class real estate projects outside of Israel, starting in the U.S.,” said Neumann. “Assaf and Barak have an incredible track record of developing large scale multi-use real estate projects around the world. We’re extremely excited to be working alongside Canada Global to offer Flow’s exceptional community-driven living experiences to more people around the world.”
Flow recently announced a partnership with local investors to develop and acquire three apartment buildings in Riyadh, which will contain approximately 920 units upon completion. Currently, Flow owns six buildings in the U.S., operating two of them.