At the end of last week, Africa-Israel Investments (TASE: AFIL) and BST Enterprise and Construction purchased a plot at 48-50 Ben Gurion St., Ramat Gan (near the Israel Defense Forces compound) from the Shub-Yaron-Lagziel group in a 34% deal. The sellers will be paid in cash from the estimated sales proceeds of $42 million from the apartments. Africa-Israel and BST will construct in equal shares a 33-story building with 144 apartments.
The owners of Megadlei HaTmarim, which owns the site, include Geulat Hahrah (Moshe Shub) 25%, Petah Tikva-based company Yaron Yeshayahu 25%, businessman Shaul Legziel 12.5%, and an anonymous company registered in the Virgin Islands 12.5%.
The approved urban building plan (UBP) allows construction of 156 apartments, but the developers will build only 144. BST, owned by Nazareth-based managing director Badia Tanos and deputy managing director Soubhi Tanos, will be the chief contractor. The financing bank, architect, and insurance company for the project have not yet been selected. The building will include seven 150-sq.m. penthouses with balconies, which will be sold at an estimated $700,000 each. The developers have promised to build a 1,000-sq.m. library for the Ramat Gan Municipality.
The deal renews the partnership between Africa-Israel and BST, after the two companies were locked in a dispute in recent years over a Nazareth project. The dispute was recently settled.
Published by Globes [online] - www.globes.co.il - on March 28, 2004