A major vacate-and-build contract in the Neve Sharett neighborhood in north Tel Aviv has been signed. Sources inform ''Globes'' that a unique aspect of the project is that it was organized by the residents themselves, who published a tender among contractors in June 2006. After six weeks, the residents selected a joint bid by Electra Ltd. (TASE: ELTR), SGS Construction Company Ltd, and Arie Parshkovsky Buildings Ltd
Under the project, 154 2-3-room apartments will be demolished, and replaced with 414 apartments in six buildings. Sales proceeds are estimated at $80 million. Each resident will receive a new luxury apartment, and the contractors will receive a large, expensive lot available for construction. Waxman - Govrin (Nadan) Engineering Co. Ltd. is the project manager.
The project will enjoy a number of tax breaks: a full exemption on the betterment fee, betterment tax, purchase tax and management permit fees.
The contact is noteworthy given the fact that 100 government initiated vacate-and-build projects are stuck.
Published by Globes [online], Israel business news - www.globes.co.il - on September 17, 2006
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