80 apartments in the 648-apartment project were sold on Friday to members clubs for $13 million.
Delek Real Estate will pay $26 million for a residential compound in Ness Ziona, zoned for 648 apartments. Delek Real Estate bought the compound two years ago from Kfar Aharon, but the price was only now settled. 80 apartments in the project were sold in the first day to members clubs for $13 million.
The agreement between Delek Real Estate and Kfar Aharon stipulates that the moshav will receive 48 of the project's apartments. Construction costs are $60,000 per apartment, which means the total cost will be $2.9 million. Kfar Aharon is getting more from the deal, because it is receiving apartments in finished condition, including land. The apartments market value is $180,000-200,000 each.
The main payments are to external entities, rather than Kfar Aharon. Delek Real Estate paid Israel Land Administration $12 million for rights, $4.5 million for development costs, at $7,000 per apartment, and betterment taxes to the local authorities. Delek Real Estate estimates its costs at $40,000 per apartment, amounting to $26 million for the entire compound. Baranowitz A.Z. and Sons will be the main contractor.
Published by Globes [online] - www.globes.co.il - on September 29, 2002