Mehadrin to earn NIS 32.5m profit sale of land in Ashkelon

Mehadrin chairman Yonatan Basi is director of the SELA Administration for disengagement from the Gaza Strip and northern Samaria.

Real estate company Mehadrin (TASE: MEDN) is about to reap a big profit from the removal of Jews from the Gush Katif communities from the Gaza Strip under the disengagement plan. The company announced today that it had signed an agreement with the Israel Land Administration (ILA) giving the latter a free nine-month option to buy 1,300 dunam (325 acres) in northern Ashekelon.

The exercise price for the option is NIS 46,410 per dunam (NIS 185,640 per acre), making the total exercise price for the land NIS 60 million. If the ILA exercises the option, Mehadrin will post a one-time net after-tax capital gain of NIS 25,000 per acre, making its total profit on the deal NIS 32.5 million.

For the past six months, Mehadrin chairman Yonatan Basi has been director of the SELA Administration, the special administration established in the Prime Minister’s Office for handling Jews removed from the Gaza Strip and northern Samaria. IDB Holding Corp. (TASE: IDBH) subsidiary Hadarim Properties (TASE: HAPR) (37.1%) and Israel Phoenix Assurance (TASE: PHOE1;PHOE5) (33.1%) control Mehadrin. The latter’s market cap is $57 million, following a 57.1% surge in its share this year.

Published by Globes [online] - - on October 31, 2005

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