Ofer Nimrodi signs Chinese project financing deal

Ofer Nimrodi signs Chinese Deal

The deal includes 19 real estate projects in Israel. The first two are a 60-floor office high rise in Bnei Brak and 1,000 bed nursing home.

Israel Land Development Company (TASE: ILDC) today announced that it had signed an agreement with a leading Chinese government company. The agreement involves building and financing 19 potential real estate projects in Israel for an estimated $3.7 billion. Six of these projects are owned by the company, and the others are future urban renewal projects.

The projects include 21,500 apartments in various advanced stages of construction, subject to obtaining the consent of tenants and the local authorities. Israel Land Development also noted that the parties would consider a joint venture in real estate and residential construction in Israel.

It was asserted that the Chinese company would provide 70% of the financing for each project, while Israel Land Development would provide the other 30%: 15% against a guarantee from an international bank and 15% according to construction milestones. It was further stated that the financing for the Chinese company would be repaid over a two-year period from the end of the project, or when Form 4 is received.

The Chinese company is scheduled to send a team to Israel in the next two weeks to examine various sites. It is then expected to make bids for two initial projects a large 65,000-sq.m. nursing home in Bnei Brak with over 1,000 beds, and a 65,000-sq.m. 60-floor office tower in Bnei Brak.

Israel Land Development CEO Ofer Nimrodi said that the Chinese company was a huge government company "on a scale unknown in Israel. The Chinese company has technology and high-quality performance that will enable us to build projects and thousands of housing units at competitive prices."

Published by Globes [online], Israel business news - www.globes-online.com - on April 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Ofer Nimrodi signs Chinese Deal
Ofer Nimrodi signs Chinese Deal
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