Africa Israel Residences (TASE: AFRE), controlled by Danya Cebus (TASE: DNYA), today reported an agreement to buy the Tel Aviv municipality's rights in the Semel Darom (Summayl) site between Jabotinsky Street, Ben Shaprut Street, Arlosoroff Street, and Ibn Gvirol Street. The site is one of the last and most expensive land reserves in central Tel Aviv. The company will pay the Tel Aviv municipality NIS 192 million for the rights, plus VAT.
Africa Israel Residences published its financial statements for 2018, showing NIS 977 million in revenue from the sale of housing units, compared with NIS 924 million in 2017. Total revenue from construction and land deals was NIS 1.019 billion, compared with NIS 982 million in 2017. Sales from the sale of housing units totaled NIS 253 million in the fourth quarter of 2018, compared with NIS 302 million in the corresponding quarter in 2017. Total revenue from construction and land deals in the fourth quarter amounted to NIS 261 million, compared with NIS 316 million in the fourth quarter of 2017. Africa Israel Residences' gross profit margin on sales of housing units in 2018 was 18%, the same as in 2017, and its profit margin on construction and land deals in the fourth quarter was 17%, the same as in the fourth quarter of 2017.
Concerning the Semel Darom site, Africa Israel Residences today reported, "On March 14, 2019, following court approval, the company and the Tel Aviv municipality contracted an purchase agreement in which the company is buying the municipality's rights in Lot 112 on the Semel Darom site, now known as Lot 1472 in Bloc 6213. The municipality's rights in the lot constitute 26.2% of all the rights in it, and amount to 62.4 housing units and 1,656 square meters of commercial space, plus rights to 19 housing units that the municipality will receive as a means of removing the squatters from the lot."
According to the report, the NIS 192 million payment to the municipality will be in two unequal payments. "Within two business days of the date of the above-mentioned agreement, in exchange for registering notice of the assigning of the municipality's rights in the land in favor of the company, the company will pay 10% of the price. The remaining 90% will be paid to the municipality by June 1, 2019, in exchange for transferring ownership of the property in the Land Registry Office in the company's name."
As reported last week in "Globes," Mivtach Shamir Holdings (TASE: MISH), controlled by Meir Shamir, offered to buy control of Danya Cebus from Africa Israel Residences for NIS 520 million in cash. This offer also includes a 74% controlling interest in Africa Israel Residences. Africa Israel Residences' share was up 1.2% today following the announcement of the deal, after having already climbed 30% this year, pushing the company's market cap up to NIS 880 million.
Published by Globes, Israel business news - en.globes.co.il - on March 17, 2019
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