The Meshulam Levinstein and Dankner companies told Africa-Israel Investments two weeks ago that they have decided not to enter into a partnership in the construction project for 900 apartments and a commercial center on Netzer Sereni land, south west of Ness Ziona. Levinstein, Dankner and Africa-Israel were due to hold 33% ownership each in the project.
Africa-Israel developed the land for the kibbutz, in return for 7% receipts from anticipated sales. Afterwards, it received the first refusal right to purchase the land according to a value of 11%, with a commitment by buyers to pay all payments to the Israel Lands Administration and the authorities. The project is one of the largest construction projects for residential purposes in the central region.
With the announcements by Levinstein and Dankner, Africa-Israel has been left without a partner in the project. The announcement by the two companies caused embarrassment to company management, since the project is one the company’s largest in resident building. Now, Africa-Israel must decide whether to cancel the project, to enter it alone, or to attempt to look for a new partner.
Levinstein announced that in light of the current real estate situation, it does not believe it is viable to enter large residential construction projects in this region. Dankner announced that in the next few years it will focus on a project for building 800 apartments in west Rishon Letzion together with Africa-Israel, and the company has no interest to enter an additional, large project in the central area.
Published by Israel's Business Arena July 26, 1998.