Kaldash and the Rehovot municipality are in advanced negotiations for a land swap deal in the town. Under the proposal, Kaldash will return the 30 dunam old Maccabi sports stadium in the center of town, on Herzl Street, to the municipality. In exchange, it will receive additional building rights in the residential project it owns in northern Rehovot.
For the deal's purpose, land value is estimated at $12 million. Kaldash will receive additional building rights for an equivalent value.
Kaldash purchased the sports stadium from the municipality many years ago. In the past, the Yonah group partly owned the stadium, but Kaldash bought its share. The plot is designated for construction of 240 apartments in high rise buildings, a 7,000 sq.m. commercial center and a cultural hall. The land is estimated at $10 million for the residential area (based on $40,000 for the land per apartment) , and $2 million for the commercial center.
Many Rehovot residents recently called on the municipality to act to prevent saturated building on the plot, which is the last one in the town center. Some residents even proposed that everyone residing in Rehovot pay a "levy" of NIS 5-10 to purchase the plot from Kaldash. The mayor offered the land swap deal to Kaldash recently. Kaldash examined the offer and decided to accept in principle, if it receives equivalent building rights. The municipality says it appreciates the good will shown by Kaldash. If the deal is completed, the municipality will build a park and a cultural hall on the plot.
Kaldash owns another adjacent plot, designated for the construction of 60 apartments, which does not relate to the land swap deal.
Published by Israel's Business Arena on 23 April, 2000