Israeli real estate investment fund Reality Fund has sold its 60% stake in the Lev Mevaseret project in Mevaseret Zion to a buyers group led by Y.D. Barazani Real Estate and Construction, which owns the other 40% of the project.
Reality Fund and Barazani bought the 21.25 acre site of the former Mevaseret Zion immigrant integration (absorption) center from the Jewish Agency for Israel in 2019 for NIS 266 million. Following the approval of an increase in building rights, the site is now valued NIS 405 million and Reality Fund will receive NIS 235 million for its stake.
In 1993 the construction of 356 housing units was approved for the area of the immigrant integration center. In 2018, the plan was enlarged to 956 apartments in eight-floor buildings as well as commercial, office and public buildings. In November 2020, the Jerusalem District Planning and Building Committee dismissed objections by the Mevaseret Zion Local Council to the enlargement of the plan, which had been initiated by the Israel Land Authority.
Meanwhile, the houses of the former immigrant center were renovated by Israel Reality Fund and Y.D. Barazani last year and rented out on four year leases, which generate net operating income of NIS 10 million annually.
Published by Globes, Israel business news - en.globes.co.il - on June 21, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021