Azrieli Group Ltd. (TASE: AZRG) this week bought land for NIS 63.8 million in the Holon industrial zone near the group's industrial park. The price does not include development expenses and VAT. The purchase came after the Azrieli Group won an Israel Land Authority tender for four lots with a combined 12 dunam (three acres), zoned for construction of 50,000 sq.m. of main and service space.
The land is located 500 meters from the industrial park currently under construction by Azrieli Group, which has four buildings and a total of 120,000 sq.m. of space on all their floors. The space in two of the buildings has already been occupied, and two more are now being built. The existing site will serve 800 employees. The deal is a combined one between Azrieli Group and the Holon municipality, which is a 17% partner in the project.
This explains the amount bid by Azrieli Group for the lots, which is far more than the competing bids submitted. For example, Azrieli Group's winning bid of NIS 19.9 million for one of the lots, which covers 3.6 dunam (0.9 acres) was almost double the next highest bid of NIS 10.8 million, while the assessed value was NIS 13.3 million. Five groups competed for a similar lot, with Azrieli Group's winning bid being NIS 17.5 million, compared with a second place bid of only NIS 9.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 24, 2015
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