GOTIT GROUP × Ascent
An additional source of income
for Ascent
A proposal to invest in income-producing property in England
Using the value in existing properties to help fund Ascent’s work
₪83,333per month
THE OPPORTUNITYKeep the properties in Israel
Keep the properties in Israel
Build an income stream in England
Ascent owns substantial properties in Safed that support its activities. Based on the information provided, these properties are not mortgaged.
Our working assumption is that the properties are worth around ₪35,000,000. If borrowing of up to 75% is approved, they could support finance of around ₪26,000,000.
We propose using around ₪20,000,000 of this finance to buy an income-producing property in England, with the aim of generating a steady additional income for Ascent over the long term.
The buildings in Safed would continue to serve Ascent, while Ascent would also own an additional property in England that generates rental income.
The aim is to build a stronger financial base for day-to-day activities by putting the available funds to good use.
02 / THE PLAN
Example based on an investment of ₪20,000,000How the money works for Ascent
Property income₪2,000,00010% per year
−Bank interest₪1,000,0005% per year
=Annual balance for Ascent₪1,000,000Before costs and tax
This calculation assumes interest-only payments with no capital repayments, and that the full ₪20,000,000 is used towards the property price.
What we propose
Our aim is to take around ₪20,000,000 from the finance raised in Israel and invest it in a property in England targeting an annual rental return of around 10%.
The idea is straightforward. Assuming an interest rate of 5%, an amount equal to around 5% of the investment would cover bank interest. The remaining amount, also around 5%, would be allocated to Ascent’s activities.
Funds raised against the properties in Israel could therefore generate income in England, pay the loan interest and leave the balance available to Ascent after costs and tax.
We would find and buy a property in a good location, at an attractive price, with reliable tenants on long leases.
We would focus on a property that is already generating income at the time of purchase, with a clear picture of its income, costs and tenants’ long-term commitments.
The property would be owned by Ascent directly or through a dedicated company in which Ascent holds an interest, depending on the agreed legal and tax structure.
Alongside the rental income, we would also look at opportunities to increase the income and property value over time.
What this could mean for Ascent
An additional income stream could help pay staff, maintain the buildings and support existing programmes and new activities.
It could also allow Ascent to direct more donations towards growth and development, while reducing the pressure to raise funds for day-to-day costs.
Ascent would also hold an interest in another property, which it could keep for the long term or sell in the future, depending on its needs and market conditions.
What remains in practice
The rental income is intended to cover the interest on the borrowing in Israel and leave a balance for Ascent’s activities.
Before selecting a property, we would include purchase and finance costs, management, maintenance and tax in the calculation, so Ascent can see what is expected to remain in practice.
The timing of rent receipts and transfers would follow the leases and the agreed cash flow plan.
There is also room to expand in Israel +
The investment in England could be combined with buying another building for Ascent’s activities in Israel.
If total finance of around ₪25,000,000 to ₪26,000,000 is approved and ₪20,000,000 is allocated to England, around ₪5,000,000 to ₪6,000,000 would remain before costs, subject to the finance terms.
It may not be necessary to use all of that balance to buy another building in Israel.
For example, a building costing ₪7,000,000 would require ₪1,750,000 towards the purchase price, plus costs, if the bank approves a 75% mortgage against the new building itself.
This could allow Ascent to buy another building in Israel while keeping ₪20,000,000 available for the income-producing investment in England.
Even if the entire new building were paid for using the loan against the existing properties, that money would still carry interest. We would therefore compare the available finance options, including rates, repayments and security.
The contribution towards the Israeli purchase would also come from borrowing in this example. We would calculate the repayments on all loans together to check that the overall plan is affordable for Ascent.
Repayments on the additional borrowing for the Israeli purchase are not included in the monthly example of around ₪83,333. We would calculate them separately to show what remains for Ascent after both purchases.
03 / UK PROPERTY OPPORTUNITIES
Based on the information providedThree properties · Three examples
These examples show how rental income could cover the interest on finance raised in Israel and leave a balance to support Ascent’s activities.
The calculations use the purchase prices and rental income shown below, assuming annual interest of 5% on borrowing equal to the purchase price.
04 / COMPARISONThe same ₪20,000,000
The same ₪20,000,000
at each example’s rental return
The table below shows what an investment of ₪20,000,000 would generate at the rental returns of the three examples.
This is a proportional illustration only. It is not an offer to buy any of these properties for this amount, or confirmation that a proportional share is available.
| Item | Worthing | Leicester | Gatwick |
|---|---|---|---|
| Investment (ILS) | 20,000,000 | 20,000,000 | 20,000,000 |
| Annual rental return | 10.43% | 11.67% | 11.09% |
| Annual rental income (ILS) | 2,086,957 | 2,333,333 | 2,217,143 |
| Annual interest at 5% (ILS) | 1,000,000 | 1,000,000 | 1,000,000 |
| Annual balance before costs and tax (ILS) | 1,086,957 | 1,333,333 | 1,217,143 |
| Average monthly balance before costs and tax (ILS) | 90,580 | 111,111 | 101,429 |
The figures illustrate the plan: raise finance in Israel and invest in a property whose rental income exceeds the interest cost, leaving a balance to fund Ascent’s activities.
The calculations assume the whole investment goes towards the property price and the loan is interest-only, with no capital repayments.
Before proceeding, we would account for purchase and finance costs, the owner’s expenses, tax and exchange rate movements to show what is expected to remain available to Ascent.
05 / STRUCTURE & PROCESS
From an idea to a clear proposal
What we bring to the process +
Our work focuses on finding property opportunities in England and assessing the price, rental income and potential to improve the property.
We propose to lead the property search and negotiations, and coordinate the agents, solicitors, surveyors and lenders.
For each property we present, we would set out the purchase price, tenants, lease lengths, costs and expected income clearly.
We also work with charities and non-profit organisations and understand the need to match the investment structure and tax treatment to the organisation’s status and activities.
We work with solicitors who specialise in tax and investment between Israel and England. They would advise on ownership, income transfers and any tax reliefs or exemptions for which the organisation may qualify.
The aim is to agree a suitable, tax-efficient structure from the outset and make sure Ascent understands what is expected to remain available in practice.
Before proceeding, we would agree with Ascent the ownership structure, each party’s responsibilities, management terms and fees, and arrangements for income transfers and reporting.
How we would choose the right property +
We would start with the amount Ascent wants to invest, the income it wants to generate and the level of risk it is comfortable taking.
We would assess the price against the property’s value, its location and condition, and the quality and financial strength of the tenants.
We would review lease lengths, break options, responsibility for repairs and costs, and suitable insurance.
We would also assess the effect of lower income, a tenant leaving, higher interest rates and changes in the sterling exchange rate on the ability to meet repayments.
A purchase would proceed only after reviewing the documents, obtaining the required approvals and agreeing the finance and cash flow plan.
Ownership and exit options +
The transaction documents would clearly set out Ascent’s rights in the property, its entitlement to income and its role in decision-making.
We would consider long-term ownership, a future sale or refinancing, subject to market conditions and the loan terms.
Suitable insurance helps protect the property, but it does not guarantee its value, rental income in every situation or an immediate sale.
NEXT STEPS
Choose a property and set out the full picture
The next step is to confirm the amount of finance available, its terms and the approvals the charity needs, working with the bank, solicitors and accountant.
We offer this as a separate service and also specialise in this work.
Alongside this, we would select suitable properties and present Ascent with a specific proposal covering the purchase price, income, costs, ownership and exit options.
The aim is to reach a decision on a clear transaction, with Ascent knowing what it is buying, how much it is investing and what is expected to remain to fund its activities.
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