Two tentative tenders revealed that the land is worth $16-21,000 per apartment. The Administration: The results are in line with the assessor’s evaluation.
In the next few days, the Israel Land Administration will sell Jerusalem developers plots for constructing some 650 apartments and houses at Pisgat Zeev, for $11 million The contractors will pay around $16,000 for land per apartment, and some $20,000 for land per house. The Administration is about to set the exact prices, which will be determined by the results of the two tentative tenders put out by the Administration. The Administration says that the findings of the two tenders deviate by only 3% from the government assessors’ evaluations. This move will bring to an end an 11-year-old dispute between the contractors and the Administration over the compound, which is one of the largest in the neighborhood.
In the days ahead, the Administration will put the plots on sale to Jerusalem contractors in the registration and draw method, with the price fixed in advance. The contractors will also have to pay some $15,000 per apartment and $30,000 per house in development costs.
Three years ago, the Jerusalem District Court ruled that the Administration must sell Jerusalem contractors - without a tender procedure - land for the construction of some 700 apartments at Pisgat Zeev. The sides have since been at loggerheads over how to evaluate the land. At the initiative of Israel Land Administration director general Avi Drexler, it was recently decided that the Administration would put out a tender for two of the 15 plots, and that the land price will be determined by the results.
The following are the results of the two tentative tenders:
- GAHA Construction Engineering Works owned by Adi and Hisdai Gur-Aryeh of Petah Tikva will buy a plot for 40 apartments of 85 sq. m. each, for $2.63 million, which represents 15,950 for land per apartment. The price of land per apartment, including development, will be $31,250.
- Public company Grofit, which is controlled by Yisaschar Rakhekvsky and his family, will buy a plot for 26 houses of 110 sq. m. each, for NIS 2.21 million, which represent $20,670 for land per apartment, excluding development costs. The price is 122% higher than the minimum price, which was $9,300 for land per apartment. The price of land per apartment, including development, will be $51,050.
Published by Israel's Business Arena June 27, 1999