Delek Real Estate will buy a four-dunam (one-acre) plot in Jaffa north of Eilat St, near the seashore from Israel Land Administration (ILA). The parties recently reached an agreement to this effect. The price will be determined by an assessor and earlier deals in the area. Delek Real Estate will pay an estimated $4 million.
The sale is exceptional, since the ILA, since its founding 40 years ago, has customarily leased land under its ownership, rather than selling it outright. This policy is stated in the Israel Land Administration Law. Until now, ILA land sales have been exceedingly rare.
The ILA had no alternative in this instance. Delek Real Estate owns the adjacent 7.5-dunam (1.875-acre) plot. The two plots constitute a single unit. Delek Real Estate petitioned the Tel Aviv District Court for a joint liquidation, which would require a tender to sell the compound. Under the circumstances, the ILA had no choice but to agree to sell its plot. The court approved the arrangement, and ruled that the ILA would sell the plot without a tender at a price set by an assessor.
Delek Real Estate bought its plot two years ago from Koor Properties for $7 million. The Manshieh/1200 plan authorizes construction of 28 apartments per dunam (112 apartments per acre). Delek Real Estate will therefore be able to build 210 luxury apartments on its plot and 320 apartments on the combined compound.
The compound is 300 meters from the sea, and Delek Real Estate believes the apartments will sell quickly. Several companies have contacted Delek Real Estate to join in the project, but the company has no such tendencies at this time.
Published by Globes [online] - www.globes.co.il - on August 11, 2002