Adam Neumann invests in Israeli real estate company

Adam Neumann is dipping his toes in another international real estate venture.

Neumann’s Flow, Andreessen Horowitz — a backer of Flow — and Israeli cloud security business founder Assaf Rappaport invested a combined $27 million into Canada Global, Calcalist reported. The real estate company is the international arm of the investment group Israel Canada, and is managed by Asaf Touchmair and Barak Rosen.

As part of the cash infusion, Flow and Andreessen Horowitz will receive shares on the Tel Aviv Stock Exchange worth 25 percent of Canada Global’s equity post-allocation. Flow will also purchase 4 percent from other shareholders and close the deal holding 29 percent of Canada Global.

Assaf Rappaport, who founded Wiz, will receive shares priced the same as Flow’s shares and come out to 1 percent of the company. Touchmair and Rosen’s combined holding of the company will drop from 79.2 percent to 58.7 percent. They acquired 90 percent of the company in 2022.

The deal will more than quintuple the cash Canada Global has on hand. Based on a $68 million valuation, the transaction will pump the company’s valuation to 341 million NIS, or close to $91 million dollars. 

Canada Global owns a trio of apartments in London, but not much else. Under an agreement with its parent Israel Canada, Canada Global will not operate in Israel or countries where Israel Canada operates, ironically including Canada.

But the investment from Flow could bear fruit at a Neumann favorite: Miami. Canada Global is eyeing multifamily deals of at least $100 million in the market, with one expected to close in the coming weeks. Canada Global will develop and operate properties, while Flow will manage them and have the right to enter as a partner for up to 50 percent of each individual development.

Neumann seems to be thinking globally with his recent deals. The Miami-based, residential-focused Flow recently partnered with local investors to develop three properties in Saudi Arabia, expected to result in more than 900 housing units. Flow will own and manage the properties, one of which is already open.

— Holden Walter-Warner