Africa Israel Investments and a consortium of Ashdar, NAVE and Azorim are resuming their land purchases in the center of the country. The companies recently concluded deals to buy plots for the construction of 300 apartments in Hod Hasharon. The deals are by percentages, without cash payments or bank coverage.
Ashdar, NAVE and Azorim will shortly sign a contract to buy a 20-dunam (five-acre) plot in equal shares in the Magdial neighborhood, from private parties. The sellers will receive 32% from the proceeds of the apartment sales, or the apartments themselves. The land is agricultural, and construction will begin after it is rezoned. It is believed the local planning and building commission will approve the building of seven apartments per dunam, for a total of 140. Ashdar is a subsidiary of Ashram, and NAVE is a great-granddaughter subsidiary of IDB Development, through Property & Building Corp. and Hadarim Properties.
Africa-Israel concluded a deal to buy an adjacent plot from private parties, intended for the construction of 160 apartments. The sellers will receive 35% of the proceeds from sales, or the apartments. This land is also agricultural, and will require rezoning.
Ashdar is also negotiating to buy another plot in Magdial, possibly together with NAVE and Azorim. Ashdar plans to build 250 apartments in Hod Hasharon, with partners. The company believes the towns’ inventory of apartments is diminishing, and there is room for new deals.
The average price of four-room apartments in Magdial is $210,000, which means the proceeds will be an estimated $9.4 million for the Ashdar-NAVE-Azorim deal, and $11.8 million for the Africa-Israel deal.
Published by Globes [online] - www.globes.co.il - on June 30, 2002