Ashtrom wins tender for Tel Aviv rental units


The group submitted the NIS 121.5 million winning bid for the rights to build 350 apartments for rent.

A week after the tender for long-term rentals in the Gadna complex in southern Tel Aviv closed, the government-run Apartment for Rent (AfR) announced the winner the Ashtrom Group, with a bid of NIS 121.5 million.

As Globes reported on Wednesday, AfR elicited further bids from the two companies with the highest offers in the tender, and Ashtrom emerged with the winning bid, defeating Shikun & Binui.

The other bidders in the tender were Azorim, Minrav, Africa Israel, the Aviv Group, Cohen City (on behalf of an investor group), the Netanel Group, and the Prashkovsky Group.

The Gadna tender allows its winner to construct 350 residential units in a number of buildings (none higher than 15 floors) over a 3-acre property in the Gadna complex, owned by Halamish.

All the future apartments are designated as long-term rentals for a period of 20 years, after which the company will be free to sell them on the free market.

The Ashtrom Group must operate and maintain the project for the period, using a property management firm according to the AfR guidelines published in the tender.

Furthermore, according to the terms of the tender, a quarter of the homes built will be subsidized to 80% of the rent price on the free market for eligible residents, and 27 units will be designated for current residents of the city.

The proceeds from the sale of the land will be used to fund public housing.

The plan for the Gadna complex, like the plans for the projects in Jerusalem, Haifa, Herzliya, Ramat Hasharon, Raanana, and Gan Yavne have created a critical mass of thousands of rental units alternative long-term housing solutions for the public, said AfR CEO Uzi Levy.

He added, The results of the tender and the reputations of the companies involved among the leading real estate interests in Israel prove the feasibility of an economic model for rental units. It is important to emphasize the proceeds from the sale of the land will be used to fund public housing.

Levy further noted the company will soon publish additional tenders in high-demand areas.

Ashtrom Group Chairman Rami Nussbaum said in a statement: We are happy to have won the tender for the AfR project building 35- housing units in the Gadna complex in Tel Aviv which will join our other rental unit projects in Haifa and Beersheva.

Control of the Ashtrom Group is in the hands of five families Nussbaum, Gueron, Meshorer, Rubin, and Lipshitz who hold 58.12% of its shares; Allied Holdings, managed by Prof. Itzhak Swary, holds 18.99%.

The company helped promote several past and future projects, including the construction of a new port in Haifa, the Carmel Tunnels, a section of Route 531, and the Jerusalem Light Rail.

Published by Globes [online], Israel business news - - on January 29, 2016

Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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