Two buyer fixed price tenders were closed yesterday. The one in Mevasseret Zion was successful, with all the lots being marketed to contractors and developers, while the one in Tiberias failed, with no bids submitted.
The successful tender, the first buyer fixed price tender in Mevasseret Zion, included 376 discounted housing units on four different lots. A total of 10 bids were submitted, with the winning bids coming from two companies. One of the lots, won by Azorim Investment, Development and Construction Ltd. (TASE: AZRM), allows construction of 150 discounted housing units. The three other lots, containing a total of 226 discounted housing units, were won by Y.D. Barazani Real Estate and Construction. The lots, located in a new neighborhood in the town southeast of the Hahotzvim Rd., cover a total of 117 dunam (29.25 acres), and are zoned for the construction of 6-7 storey buildings.
Judging by the tender results, demand for lots was strong, resulting in bids reflecting a substantial discount on the maximum price set by the state in the tender. An analysis of the tender shows that an 87-sq.m. apartment in the future projects will be sold at prices starting at NIS 990,000, a 97-sq.m. apartment will be sold at prices starting at NIS 1.105 million, and a 107-sq.m. apartment will be sold at prices starting at NIS 1.663 million. These prices include VAT and parking spaces, a balcony, and storage.
The Ministries of Finance and Construction and Housing today said that the prices reflected a 27% discount on the market price for similar housing in the town.
Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2016
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