The bids averaged 12% above the minimum price set by the Israel Land Authority and the Tel Aviv Municipality.
After a month-long wait, the Israel Land Authority tenders committee today announced the winners in the tender to build 452 apartments on five lots in the Mishtala neighborhood in northeast Tel Aviv. Gindi Holdings Ltd. won three lots, for the construction of 232 apartments. Africa-Israel Investments Ltd. (TASE:AFIL) won the biggest lot, zoned for the construction of 112 apartments. A buyers group organized by Hani Horowitz won another lot.
Despite claims that the minimum prices set by the Israel Land Authority and the Tel Aviv Municipality in the tender were too high, the average bids by the companies were on average 12% above the minimum prices. The winning bids averaged NIS 1.14 million per land per apartment, including development.
No bids were submitted for one of the six lots. The minimum price for the lot, zoned for the construction of 80 apartments, was NIS 82 million. Together with development costs of NIS 10.1 million, bring the total price up to NIS 92.1 million, the price amounted to NIS 1.15 million per land per apartment.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2013
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