Shapira family, partners offer $10 mln for Misgav Ladach

The Shapira family plans to construct 12,000 sq.m. of residences or income-producing properties at the site. Maccabi Healthcare Services and Kupat Holim Meuhedet received an extension to improve their bids.

Diza Investments & Management, owned by the family of the late Avraham Shapira, is offering to buy the 9.96-dunam (2.49-acre) Misgav Ladach Hospital compound in Jerusalem for $10 million. If the deal goes through, two retirement home management companies will have a 50% share of the deal. The other bidders, Maccabi Healthcare Services and Kupat Holim Meuhedet, received a 21-day extension to improve their bids.

Misgav Ladach is a 6,700-sq.m., three-storey building with a basement located at 27 Hizkiyahu Hamelech St. in the Katamon quarter. The Shapira family is mainly interested in building 12,000 sq.m. of residences or income producing properties, according to the detailed municipal building plan it will submit for approval. Doron Shorer, the Misgav Ladach receiver, ruled that the existing building could be operated as a hospital, medical institution, "or any other purpose, including a real estate property." Sources inform "Globes" that the Shapira family wishes to convert the existing structure into a geriatric hospital.

The Shapira family is the only bidder so far willing to pay the $10 million minimum price fixed by the receiver. Maccabi Healthcare Services offered $9.05 million, while Kupat Holim Meuhedet bid $9 million. At the same time, Shorer permitted the two health funds to upgrade their bids. The pricing was scheduled for October 31, but Maccabi petitioned the Supreme Court, which ordered that the other bidders be given 21 days to respond to the Shapira bid, which delayed the pricing.

A group headed by contractor Reuven Ela and developer Moshe Sela previously offered to buy the compound for $11 million. Ela and Sela promised to pay most of Misgav Ladach's estimated NIS 65 million ($15 million) debt and also committed themselves to reopen Misgav Ladach as a hospital. Their offer was rejected, due to Shorer's opposition.

Published by Israel's Business Arena on November 4, 2001

View comments in rows
Update by email about comments talkback
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018