The real estate investment crisis abroad has also reached the company founded by the former CEO of Bank Hapoalim
Iintoo, a digital real estate investment platform founded by Dov Kotler, former CEO of Bank Hapoalim, has run into difficulties due to rising interest rates in the US. The company, which invested in American real estate, raised hundreds of millions of shekels, but key assets in its portfolio have been delayed for years, some in arbitration or insolvency proceedings. The company's value has plummeted, and it was absorbed by Sde Real Estate, which is shutting down the old platform.
Iintoo, a digital investment platform for American real estate founded by Dov Kotler, former CEO of Bank Hapoalim, along with businessman Eran Rot, has encountered significant difficulties. The company, established in 2015 during a period of zero interest rates, raised hundreds of millions of shekels from clients and invested in projects with a cumulative value of approximately $2.9 billion. The rise in US interest rates in 2022 severely impacted its performance, and its value dropped from 90 million shekels in 2023 to about 20 million shekels in 2024. In November 2024, real estate entrepreneur Yoni Sde became the controlling shareholder, and the company changed its name to "Sde Real Estate." According to data obtained by Calcalist, two major projects in Iintoo's historical investment portfolio are in distress: Eden Pointe in Houston (197 housing units, purchased for $19.5 million with $18.2 million in debt) is in arbitration with the developer, and Sioux Falls 2 in South Dakota (211 apartments, purchased for about $13 million with $12.7 million in debt) is in insolvency with a negative cash flow of $276,000 in the second quarter. Investors in these two projects invested about $5.5 million. Out of 130 investments that raised $412 million, 8 ended in partial or total loss of principal, and 41 investments have been delayed for over six months (average 39 months). The company defines Iintoo's activity as "past activity" and is shutting down the platform, so stuck investors will need to find a new home. In response, Sde Real Estate stated that the investments were made before the change of ownership, and that in the Eden Pointe project, agreements were reached with the developer for full repayment of the investment principal.