After many years in which the Israel Land Authority (ILA) issued no tenders for high-density construction in Ra'anana, tenders were closed yesterday for the construction of 188 new housing units on four lots in the Neot Sadeh neighborhood in Ra'anana. Competition for each lot was intense, with an average of nine bids each.
An analysis of the entire tender shows that the average value of the land, including development costs, is NIS 827,000 per land per housing unit. Neot Sadeh is a new neighborhood in northern Ra'anana located near Weizmann St. and the industrial zone. ILA will receive over NIS 150 million from the winning bidders for the four plots just for the land.
Electra Investments won two of the four lots in the tender. Its winning bid of NIS 34.5 million for the first lot, slated for the construction of 43 housing units, overcame seven other bids. This bid reflects a price of NIS 821,000 per land per housing unit, including development. Electra's second winning bid, also for 43 housing units, was NIS 35.3 million, the highest of nine different bids. This price reflects a price of NIS 841,000 per land per housing unit. Both of these lots include construction rights for commercial space in the front of the buildings.
Peretz Bonei Hanegev won the tender for a lot zoned for construction of 60 housing units with a NIS 47.12 million bid, beating out eight other bids. The price reflects a value of NIS 804,000 per land per housing unit, including development costs.
Arazim Investment Ltd. (TASE: AZRM) won the fourth tender for the construction of 42 housing units with a NIS 34.6 million bid, the best of 12 bids. The bid reflects a value of NIS 843,600 per land per housing unit.
Published by Globes [online], Israel business news - www.globes-online.com - on April 30, 2015
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