FAIRE Fund (First American-Israel Real Estate Fund) has bought two compounds in separate deals in Tel Aviv and Givatayim in vacate and build deals. The plots are zoned for 76 apartments. FAIRE is also negotiating to buy four more compounds in the central region to build 440 apartments. Altogether, once the deals are completed and including its Rishon LeZion project, FAIRE will build 610 apartments.
In the first deal, FAIRE bought a compound for 42 apartments in Hadar Yosef, Tel Aviv, from private parties. The compound currently has three buildings, which will be demolished and replaced with an 11-storey high-rise. The apartment-owners will each receive a new apartment. Rotem-Shani Initiation and Investments, a 10% partner in the deal, will be the main contractor. Four-room apartments will be sold for $280,000, five-room apartments for $330,000, and the two penthouses for $390,000 each. FAIRE is negotiating financial coverage with First International Bank of Israel (TASE:FTIN1; FTIN5).
In the second deal, FAIRE bought a plot for 34 apartments on Sheinkin St., in central Givatayim. The plot has four old apartments, which will be demolished and replaced with an 8-storey high-rise. The apartment-owners will receive 1.5 new apartments each. Rotem-Shani, which also owns 10% of this deal, will be the main contractor, and First International Bank will provide financial coverage. Three-room apartments will be sold for $240,000-25,000, four-room apartments for $270,000-280,000, and five-room apartments for $400,000.
FAIRE has also begun construction of 49 apartments in a 96-apartment project by the sea in West Rishon LeZion.
FAIRE has raised $40 million to date.
Published by Globes [online] - www.globes.co.il - on March 9, 2003