Bareket Capital (TASE: BRKT) announced this morning that it had signed an agreement for a loan from insurance companies Clal (TASE: CLIS) and Migdal (TASE: MGDL) for financing the project to build three residential towers on Kikar Hamedina in central Tel Aviv. The non-recourse loan represents the lion's share of the finance for the project: NIS 1.7 billion out of a total of NIS 2.05 billion, the largest ever amount for non-bank finance for a residential real estate project in Israel.
The Kikar Hamedina project, in one of the most prestigious neighborhoods in Israel, consists of three spiral-shaped 40-floor towers, containing altogether 450 apartments, an underground car park with 906 parking spaces for use by the residents, a privately-owned public car park with 720 spaces, gardens with an artificial lake, public open spaces, and a school. The project covers 78 dunams (19.5 acres) in the center of Kikar Hamedina (which was an open green space). The built-up area will be 50 dunams (12.5 acres), or which 15 dunams (3.75 acres) will be public space. The designer of the project is Moore Yasky Sivan Architects of Tel Aviv.
Bareket said that the project was now in the excavation and reinforcement stage, and that it would take five years to complete. From a financial and management point of view, the project is a complicated one, as the land has over 250 owners, who are themselves the developers.
Bareket CEO Adi Gazit said, "This is a flagship project for the company and for the entire industry. We are delighted at the vote of confidence that Baraket has received from leading insurance companies Clal and Migdal, and see in that an important milestone in the process of closing finance for the Kikar Hamedina project, a huge, complicated project."
Published by Globes, Israel business news - en.globes.co.il - on May 1, 2022.
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