A partnership of Israel Canada (TASE: ISCN) and BSR REIT (TASE: HOM.U) has won a huge tender from Apartment for Rent - The Governmental Company for Housing and Rental Ltd. for 2.5 acres of land known as the "Diamond Exchange triangle" north of the Ramat Gan Diamond Exchange.
The two companies bid NIS 937 million for the land, well above the minimum required bid of NIS 540 million, on which there are exceptionally large rights to build 200,000 square meters in three 60-floor towers. The first tower will have 400 housing units for rent, and 350 student dormitories and the other two towers will have 110,000 square meters of office space. There will be 7,000 square meters of commercial space in lower buildings, and an underground car park for 300 vehicles and public areas for the Ramat Gan Municipality.
The Diamond Exchange triangle area is overlooking the Ayalon Highway (Road 20) opposite Park Tzameret in Tel Aviv. The companies estimate that the cost of construction will be NIS 4 billion.
BSR chairman Nachshon Kivity estimates that the land could actually be worth as much as NIS 1.35 billion, indicating that the group might have been prepared to raise their bid.
Published by Globes, Israel business news - en.globes.co.il - on August 19, 2021
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