An agreement has been reached for the Aleppo Holdings and Investments group to finance two large CPM residential construction projects in Rosh Ha’ayin and Kfar Yona totaling $250 million. The group will also build 250 houses in Negba and Sde Yoav for $50 million. The group’s activity is being reported by “Globes” for the first time today.
CPM won Israel Land Administration (ILA) tenders for the designing of 4,500 apartments in Rosh Ha’ayin and 2,000 apartments in Kfar Yona. Designing has been completed and approval is in advanced stages of the town planning regional committee. The parties agreement stipulates that CPM will be able to purchase land for construction of 20% of the neighborhoods, 900 apartments in Rosh Ha’ayin and 400 in Kfar Yona. CPM plans to utilize the possibility.
Aleppo will finance CPM’s construction in Rosh Ha’ayin, scheduled to begin in another year, and in Kfar Yona, scheduled to begin in 2002. Prices of apartments in Rosh Ha’ayin will range from $150,000 for a three-room apartment to $300,000 for a house. Aleppo will provide financing from sharehodlers’ equity and bank loans.
At the same time, Aleppo concluded deals for the construction of 138 houses in Kibbutz Negba and 150 in Sde Yoav, under the ILA board town planning decision 737. The Attorney General stiffened the terms of deals under this decision, but Negba and Sde Yoav had already received approval prior to the restrictions. The construction is valued at $50 million.
The Aleppo group is owned by entrepreneurs Sharon Tussia-Cohen, Yossi Hushinsky and a foreign investor, reportedly through Dana Finance of the Virgin Islands. Tussia-Cohen is resigning next week as general manager of Airport City to concentrate on private business. Aleppo owners until recently held 40% of Airport City, and sold their holding to JOEL for $21 million. Part of the sum will be used to finance the real estate deals.
CPM is owned by Amikam Oren, Leon Ben-Dayan, Yossi Hendler and David Zion.
Published by Israel's Business Arena on 3 December, 2000