The project comprises 500-600 luxury apartments in four high-rises, with an estimated sales value of $300 million.
America Israel Investments is negotiating to buy 50% of Israel Phoenix Assurance’s (TASE:PHOE1; PHOE5) Kibbutz College of Education (Seminar HaKibbutzim) project in Ramat Aviv. The project calls for the construction of 500-600 luxury apartments in four 30-storey high-rises with an estimated sales proceeds of $300 million.
Israel Phoenix shareholder Jacob Shachar told “Globes” yesterday that Israel Phoenix had decided to quit the real estate market and sell half its holdings in its two projects. The Kibbutz College is the larger project. Shachar and other Israel Phoenix executives declined to disclose the name of the potential buyers.
Israel Phoenix bought the 40-dunam (10-acre) compound from the Kibbutz College for cash in a 50% deal three years ago. Israel Phoenix made a NIS 10 million down-payment. America Israel will pay Israel Phoenix half this sum, plus several million shekels amounting to half of Israel Phoenix’s investment in architectural designs and Urban Building Plan preparations. America Israel will pay for half the construction costs and provide half the collateral for the bank loans and half the financial coverage.
Under the pending contract, America Israel will manage and market the project, since Israel Phoenix does not want to be directly involved in managing real estate projects.
Published by Globes [online] - www.globes.co.il - on July 2, 2003