Megureit buys 80 units in Jerusalem Mahane Yehuda project

Jerusalem Mahane Yehuda residential project / Imagin: PR

The REIT fund has bought 80 apartments for rent in the "Etz Haim" project adjacent to Mahanei Yehuda market for NIS 200 million.

Megureit Israel Ltd. (TASE: MGURIT) has bought 80 apartments in the "Etz Haim" project adjacent to Jerusalem's Mahanei Yehuda market for NIS 200 million. Megureit is engaged in long term residential rentals. The sellers are the private landowners including businessman Amir Biram. The deal includes 38 underground parking spaces and 44 storage rooms.

According to the agreement the apartments will be handed over to Megureit within five years. Under the terms of the deal the sellers will receive NIS 160 million in Megureit equity and NIS 40 million in shares at NIS 7.50 per share.

Megureit CEO Mati Dov told "Globes" "The landowners have sold the rights to two residential towers on the site to BSR Mahane Yehuda. Out of 308 apartments to be built, 228 have been sold by BSR to investors. Some of the apartments remain in the hands of the landowners. We have bought 80 apartments from a group of companies that sold them to us as developers. We will receive the apartments ready as required by the Sellers Law."

The 'Etz Haim' project covers 1.5 acres at the junction of Jaffa Road and Coah Road in between the Clal Center and Mahane Yehuda market. The project will have two 30-floor towers with 308 apartments and six-floors of underground parking.

The land in Jerusalem also includes plans to build a hotel for which construction has already begun. The landowners signed a 25 year lease with Fattal Hotels, who will operate the hotel, which will have eight-floors and 170 rooms. BSR is also involved in that contract, providing supervision and management services, while construction is being carried out by a Jerusalem building contractor.

The project is being designed by Ian Bader of New York architects Pei Cobb Freed and Partners. The Israeli architect is Motti Kassif from the Barely Levitzky Kassif (BLK) architects firm.

For Megureit this is a fourth deal in Jerusalem. In March the company bought 59 apartments in Arnona, and it is a partner with Minrav Holdings Ltd. (TASE: MNRV) in a rental project in Malha. Megureit also owns a building in Jerusalem's city center.

In addition, Megureit has five project in Tel Aviv, two projects in Herzliya and projects in Givat Shmuel, Ramat Gan, Petah Tikva, Kiryat Ono, Ramla, Beer Yaakov, Holon, Rishon Lezion, and Bnei Brak. Altogether the fund expects to grow to 1,330 housing units of which 340 are rented.

Published by Globes, Israel business news - en.globes.co.il - on June 23, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Jerusalem Mahane Yehuda residential project / Imagin: PR
Jerusalem Mahane Yehuda residential project / Imagin: PR
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