Hagag Group Real Estate Development Ltd. (TASE: HGG), controlled by brothers Adv. Yitzhak and Eido Hagag, and developer Amos Maimon are organizing a buyers group for a 180-apartment project at the eastern entrance to Bat Yam. The three-dunam (0.75-acre) site at the corner of Komemiyut Street and Shperber Street was previously owned by the Bat Yam municipality. The municipality conducted an auction for the land, won by the Halon Layam (Window Facing the Sea) investment group, headed by Maimon, with a bid of NIS 59 million, plus VAT. Through its Regency Hotel subsidiary, Hagag Group bought 45% of the rights in the land for NIS 26 million, plus VAT.
The land was previously zoned for construction of public buildings. Under the sale agreement with the Bat Yam municipality, the municipality made the deal contingent on promotion of a new urban building plan for the land that would include residences, offices, and commerce. Hagag Group reports that the new urban building plan was recently approved, and is organizing a buyers' group for a project with two residential towers, offices, and commercial space. The apartments will range from two to five rooms, with five-room apartments being offered for less than NIS 2 million.
Hagag Group says, "The group is continuing its strategy of building apartments that will make it possible to buy one at low prices in locations where it believes that prices will rise, such as this part of Bat Yam. Demand for residential, office, and commercial space there is growing. The project will include a diverse composition of apartments and cheap prices especially suitable to young families and investors. The company has set a goal of focusing on locations offering good alternatives to the high prices in Tel Aviv."
The Bat Yam municipality confirmed the details, but said that the project would include 170 apartments: "The current urban building plan for the includes 170 housing units, 6,220 square meters of commercial and office space, and 250 square meters of public buildings. The buyers did not present any other plan to the municipality. If they make a request, it will be handled in the usual way in accordance with the policy of the city's management."
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2019
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