Bank of Jerusalem offered preferential terms, but it is a small bank, able to cover Stage I only.
Bank Hapoalim will provide financial coverage for the 400 apartment Little Switzerland project to be built in north Ashkelon by the Harosh-Dahan group. This was agreed at a developers meeting last Monday in Paris. Harosh’s attorneys came to Israel at the weekend, to sign the contract with Bank Hapoalim.
Little Switzerland is one of the biggest residential projects presently under construction in Israel. The developers originally bought the land from the Diyur company, owned by Bank Hapoalim, at $3.8 million. Bank Hapoalim was also to have provided coverage for the purchase of the lot. The bank’s decision to provide coverage for construction was now on the agenda.
The developers received two offers of financial coverage: Jerusalem Bank required the developers to put up own capital of $1.8 million only, for the initial stage. Bank Hapoalim required $3 million own capital. On examination in transpired that although Jerusalem
bank’s terms were apparently preferential, it could, being relatively small, and due to the restrictions imposed by the Bank of Israel on an individual borrower, provide financial coverage for the first stage only, consisting of 72 apartments. On Monday the developers decided that since they would in any event have to approach another, larger bank, to obtain coverage for the next stages, it would be best to contract with Bank Hapoalim from the outset.