Ramat Rachel sells land for new Jerusalem neighborhood

Jerusalem Photo: Shutterstock ASAP Creative

Work on the 1,800-home Mordot Arnona neighborhood is likely to get underway soon after the Noiman brothers complete purchase of the land.

Work on the Mordot Arnona neighborhood in Jerusalem is likely to get underway soon, after Kibbutz Ramat Rachel sold its 20% share of the agricultural land on which construction of 1,800 housing units was approved in 2014.

As part of the agreements with the Israel Land Authority (ILA), the ILA will market land for 1,500 of the housing units in auctions, some of which will be on the buyer fixed price track. The kibbutz is entitled to buy the land for the other 300 housing units without an auction.

It was learned today that the kibbutz had exercised its right to buy the land and sold its right to brothers Zahi and Hen Noiman for an estimated NIS 500 million. The deal also includes land in the Armon Hanatziv neighborhood in Jerusalem zoned for construction of two hotels on 28,000 square meters. Most of the proceeds will go to the ILA, which owns the land. In the past, kibbutzim have been awarded larger proceeds for freeing up land, but this was reduced following a petition to the High Court of Justice by the Mizrahi Democratic Rainbow Coalition.

The agricultural land belonging to Kibbutz Ramat Rachel, which lies within the municipal jurisdiction of the Mateh Yehuda Regional Council, is being transferred in the plan to the Jerusalem municipal jurisdiction. It will later be part of the Arnona neighborhood and part of the large hotel plan in Armon Hanatziv. According to the Neumann brothers, they are already negotiating with hotel groups for an agreement to operate the hotel.

Brothers Zahi and Hen Noiman are the owners of the Alon Group, which deals in the auto industry, and invests in real estate, startups, and ventures in Israel and overseas. The Noiman brothers' most recent deal was the acquisition of the underground observatory in Eilat.

Published by Globes [online], Israel Business News - www.globes-online.com - on November 30, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Jerusalem Photo: Shutterstock ASAP Creative
Jerusalem Photo: Shutterstock ASAP Creative
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