The municipality wants the plot in the city center for public buildings. Polar Real Estate will build a $50 million commercial and residential project on the alternate site.
The Rehovot municipality and Shrem Fudim Kelner & Co. (TASE:SFK) subsidiary Polar Real Estate recently concluded a land swap deal in the city. Polar Real Estate gave the municipality a plot on Herzl St. in the city center, originally zoned for 200 apartments and 4,000 sq.m. of commercial space, receiving an equivalent plot in the northern part of Rehovot in exchange.
The municipality initiated the deal because it wants the plot in the city center for public buildings, including a municipal library.
Polar Real Estate will sell the apartments for an estimated $40 million, and the commercial space for $10-12 million. Demand for residences in northern Rehovot is high. Azorim Investment, Development and Construction (TASE:AZRM), Kardan Real Estate (TASE: KRDR ) and Hiram Gat Engineering and Construction (TASE:BYKG) have built hundreds of apartments in the area.
Published by Globes [online] - www.globes.co.il - on April 27, 2003