Sources inform ''Globes'' that Gindi Investments 1 Ltd. (TASE: GIND.B1), Moshe and Igal Gindi Ltd., and Blue Square Real Estate Ltd. (TASE: BLSR) have signed an agreement for no-shop exclusivity negotiations with the sellers of the Tel Aviv wholesale market site. The no shop is valid through Friday.
At the same time, the sellers decided on Friday to reopen negotiations with the original winners of the tender, the Soho consortium of Shikun u'Binui Holdings Ltd. (TASE: SKBN), Eurocom Global Real Estate Ltd. (TASE: EGRE), Amot Investments Ltd. (TASE:AMOT), Aviv & Co., and Canada-Israel Development Corporation.
The Gindi-Blue Square Real Estate consortium has offered NIS 950 million, not including VAT, with an upside component, to build 600 apartments in the first stage of the project. The sources said that the upside component are the proceeds above a threshold amount per square meter, and could total NIS 500 million. This will bring the bid to as much as NIS 1.5 billion.
The first stage of the wholesale market project - Lot 6 - is zoned for 15,000 square meters of mixed residential and commercial use, including 600 apartments.
The Soho consortium also offered an upside during its negotiations. Its final offer was NIS 856 million with a 40-50% upside component for the 600 apartments in Lot 6. The consortium and the sellers failed to reach a deal.
The present negotiations between the sellers - Tnuva Food Industries Ltd., the Tel Aviv Municipality, Adv. Shraga Biran, and group of traders in the market - and The Gindi-Blue Square consortium do not include the second stage of four residential high-rises for the site.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010
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