Kanyonim, owned by Adv. Yaakov (Kobi) Gindi, is currently selling to private individuals 64 plots for apartments in two residential buildings in Schiller Garden, south-east Rehovot, for $3.84 million. The company is about to sell another 36 plots for houses in the same area, for $3.06 million. The deal, for a total of $6.9 million, was made in conjunction with the Rehovot municipality, in an innovative real estate method.
Adv. Gindi purchased the agricultural land four years ago, from private owners, for $1.5 million, including betterment tax. After the land was rezoned, he signed a contract for joint marketing with the municipal economic company. Kanyonim is selling the apartment plots to private customers at $60,000 a plot, including VAT, for a total of $3.84 million. At the same time, the buyers sign a contract with the Economic Company for the purchase of construction services.
The Economic Company will construct 56 four-room apartments which will be sold at $142,000, and eight penthouses which will be sold for $187,000 (including the land). The buyers pay Gindi and the municipal company separately, and 43 apartments have already been sold. The sales proceeds will amount to $9.5 million. Adanim Bank is providing financial coverage.
The remaining land at Schiller Gardens is designated for construction of semi-detached and terraced houses. Adv. Gindi will sell this land to private concerns shortly, in a similar manner, at $85,000 a unit, for a total of $3.06 million, including VAT. The Economic Company will apparently sell construction services in a similar way.
Ministry of Interior director-general Yaakov Efrati recently approved a similar method in reverse, for the Bat Yam municipality: The municipality, which owns the plot known as "Ma’abarat Bat Yam", will sell in a tender to the town’s residents plots for the construction of 350 apartments at $50,000 a unit, for a total of $17.5 million. The municipality signed on Ashtrom as the main contractor, without a tender, and buyers will sign with Ashtrom for construction services. Ashtrom will transfer 12% of profits to the municipality.
Published by Israel's Business Arena July 11, 1999