Canada-Israel Development Corporation, Acro Real Estate Ltd. and Terra Ltd. have won the tender for the Remez lot in north Tel Aviv with a bid of NIS 305 million. The lot is zoned for a 30-storey high-rise with 108 apartments.
The bid reflects a price of NIS 2.8 million per land per apartment, the highest figure ever paid in a tender for a Tel Aviv residential lot, including the South Kirya tender last year (now Gindi Holdings' Sarona project).
The consortium outbid Habas HZ Investments Ltd. (TASE: HABS), which offered NIS 271 million; a consortium of Dunietz Brothers & Co. (TASE: DUNI-L) and Menachem Oren, which offered NIS 222 million; and Segula Real Estate Ltd., with a bid of NIS 173 million. The Tel Aviv Municipality tenders committee's estimate for the lot was NIS 188 million, with a 20% deviation either way.
Top real estate market sources said that the land was worth NIS 180 million, and that the developer's profit margin would be no more than 5% at the high price paid. The Tel Aviv Municipality was also surprised by the high price, and municipal sources told "Globes" that the "insane" price would be rolled onto the apartment buyers.
Published by Globes [online], Israel business news - www.globes-online.com - on February 25, 2010
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