The heads of Africa-Israel Investments (TASE:AFIL01;AFIL1) and Israel Adler & Son Investment told “Globes” last week that they would invest $80 million in constructing 890 apartments and a 10,000-sq.m. shopping center in Nes Ziona. Bank Leumi (TASE:LUMI) will provide financial coverage, and Africa-Israel subsidiary Danya Cebus (TASE:DNYA) will be chief contractor.
The developers will spend $72 million on the apartments, not including land, and another $8 million on the shopping center. The initial phase will include 195 apartments; construction of the other 700 apartments will begin after the construction plan is revised, and municipal building permits obtained. The developers have already begin to build the first 95 apartments, and have sold 37 of them for $6 million.
Africa-Israel bought the land 10 years ago from Kibbutz Netzer Sereni in an 11% deal, in accordance with Israel Land Administration (ILA) Resolution 611. Getting the land rezoned from agriculture to residential construction, and having it transferred from regional council jurisdiction to that of Nes Ziona took 10 years.
Adler & Son became an equal partner in the project in 1999, paying the ILA 51% of the betterment tax on the rezoned land. The project is one of the few being constructed under Resolution 611, which was canceled years ago.
Africa-Israel Investments CEO Pinchas Cohen said last week, “Undertaking projects is a heavy responsibility, when the demand for apartments is on the wane. We’re persisting in starting new projects, because we hope things will change for the better.”
Published by Globes [online] - www.globes.co.il - on March 2, 2003