Israeli developer and building contractor Rami Shbiro has agreed to buy land on Galei Tachelet Street in Herzliya Pituah from Israel Land Development Co. (TASE: ILDC), controlled by CEO Ofer Nimrodi. Shbiro will pay NIS 211.5 million plus VAT for the prime seafront lot, with a 40% payment on signing the agreement and the balance not later than 120 days after the signing of the agreement.
The 11 dunams (2.75 acres) site known as "Pat Yam," overlooking the sea, has approval for the construction of a 144 room hotel in 19,200 square meters including commercial space. The architect's drawings of the hotel show it to be in a 14-floor building. The master plan for the hotel was approved in August 2021.
Nimrodi's ILDC owns 67% of the land with the remaining rights held by unrelated parties. The value of the land in ILDC's third quarter report for 2021 was listed as NIS 23 million, so that the company is expected to report a capital gain of NIS 100-107 million for the first quarter of 2022.
Nimrodi said, "The deal to sell the land in Herzliya Pituah is the work of many years in promoting and approving the master plan and realizing the value of the land. Realizing the land will add major value to ILDC, increase its equity and inject substantial cash into the company. These influences, together with other strategies and financing that we have conducted, will allow ILDC to execute its business and development plan both in terms of income producing property and developing housing in Israel and in Europe."
Published by Globes, Israel business news - en.globes.co.il - on January 11, 2022.
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