Africa-Israel Investments (TASE:AFIL01; AFIL1) is undertaking two major construction projects: 650-1,500 housing units in Hod Hasharon, and 1,000 units on kibbutz (collective settlement) land opposite Rosh HaAyin. Africa-Israel has partners for the latter project.
Aggregate proceeds from the two projects amount to $330-500 million, an average of $200,000 per apartment.
Africa-Israel is in advanced negotiations with farmers from Kfar Malal to buy a 30-dunam (7.5-acre) citrus orchard in the Hod Sharon city limits in a 36% deal. Africa-Israel has submitted a 1,500-apartment construction plan to the local planning and building commission, but the commission is willing to approve only 650 apartments.
Africa-Israel and its two partners, Rassco and Yaacov Engel Construction Enterprises (TASE:ENGY), have signed a 20% deal with two kibbutzim opposite Rosh HaAyin, Givat Hashlosha and Hahorshim, and the Rosh HaAyin Economic Corporation. Under the deal, the three concerns will purchase a compound for 1,000 apartments.
The land will be divided equally among the partners. Africa-Israel will lead the project, and will probably be responsible for marketing it. The Israel Land Administration has approved this deal, and the planning authorities have approved the Urban Building Plan (UBP). Construction of the first 100 apartments will get underway soon.
Africa-Israel said that given the current recession, building large neighborhoods in the large cities was preferable to individual buildings.
Published by Globes [online] - www.globes.co.il - on May 18, 2003