The state-run rental company, “Apartment for Rent”, published a RFI (request for information) in September as directed by Finance Minister Moshe Kahlon regarding advanced construction techniques and funding methods for residential projects and long-term rentals. The RFI was sent to Israeli companies as well as international groups.
“Apartment for Rent” (AfR) asked for information on advanced building methods that will help shorten the timeframe of construction residential building while reducing costs. AfR is interested in advanced techniques that are acceptable around the world, even if they are not often employed in Israel.
Meanwhile, AfR is seeking information on funding solutions for residential projects and long-term rentals. AfR said the company requested offers that explore the possibility of developing a model to allow the purchase of an apartment after a rental period. Part of the rent would be counted as payment for the acquisition of the apartment meaning the renter would gradually gain ownership by the end of their rental period.
The plan is similar to that recently marketed as “apartment for lease”.
Since AfR only published the RFI in September, it signals the initiative is only in its initial steps. Furthermore, the emphasis on the publication of the RFI abroad confirms predictions that the government was considering allowing the entry of foreign real estate firms to Israel.
The Ministry of Finance and Ministry of Construction have not rejected the possibility that Israeli companies would eventually partner with international firms.
According to the RFI, the state-run firm was seeking a solution for the development of residential neighborhoods of 10,000 units. Respondents were asked to address the possibility of full communal development for the neighborhoods so that the residential units would be built alongside the necessary complementary infrastructure.
AfR further requested that in the initial stage to test the feasibility of the advanced building and funding techniques it would approve a pilot program of some 1,000 residential units in two neighborhoods.
Companies were asked to respond to the RDI by December 15, 2015.
“Apartment for Rent will operate based on the information and the results received during the RFI process,” according to CEO Uzi Levy. “Based on the results and their analysis in consultation with engineering, finance, and legal professionals we will work to initiate, plan, and develop a significant amount of residential units, in as short a timeframe as possible, while maintaining the quality level of the construction and while saving significantly on the construction process and its costs.”
Published by Globes [online], Israel business news - www.globes-online.com - on October 16,, 2015
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