Ashdar has purchased 140 dunams (35 acres) from kibbutz Kfar Hamaccabi, near Kiryat Ata, in an 18% transaction. The area is estimated to be intended for the construction of 1,600 apartment. According to the deal, the kibbutz will receive 300 apartments or their proceeds, and Ashdar will receive 1,300 apartments. The exact number of apartments depends on the blueprints and town planning council approval.
The value of the project in terms of sales prices is estimated at $240 million, of which Ashdar’s share is $200 million, and the kibbutz’s - $40 million. Building will be carried out gradually, apparently taking at least five to seven years, based on demand and the state of the market.
The land is categorized as agricultural, and Ashdar will be responsible for attending to the change in designation to residential, and annexation of the area to Kiryat Ata’s jurisdiction. At this stage, financial coverage is not required, since it is a percentage transaction.
The area is part of a larger area of 500 dunams (125 acres) cultivated by the kibbutz. According to decision 727 of the Israel Lands Authority, the kibbutz can trade in 27% of the area, returning the remaining 360 dunams to the Authority. The Authority will issue tenders for their sale in the future. It is estimated that the remaining land is designated for construction of 4,400 apartments.
Prices of three room apartments in the region are currently in the vicinity of $120,000-$130,000, and four room apartments stand at $150,000-$170,000.
Published by Israel's Business Arena December 9, 1998