The Rishon Lezion Magistrates Court today approved the sale of the former Tel Aviv central bus station site to real estate company Shikun & Binui Holdings Ltd. (TASE: SKBN) and the Meshulam Levinstein Contracting and Engineering Ltd. (TASE: LEVI) group.
Two weeks after a pricing procedure was held among the four groups that submitted the highest bids in the tender to acquire the compound, located in southern Tel Aviv. Rishon Lezion Magistrates Court Judge Daphna Blatman-Kedrai approved the sale request by the receivers for the property, Advocates Mordechai Gluska and Dorit Levy Tyller. Although the neighborhood is currently rundown, its proximity to the Tel Aviv financial district gives the area enormous real estate potential.
In the deal for the sale of the compound, the Shikun & Binui-Levinstein partnership will pay NIS 560.5 million - 86% more than its initial bid in the tender.
In her ruling, the judge wrote, "After the receivership procedures were successfully completed, in which a worthy bid was made for the sale of the land, and since no objections were raised to the approval of the sale itself, I have found that the receivers' petition for approval of the sale should be granted." Under the ruling, unless Shikun & Binui and the Levinstein group retract their bid within 48 hours, a judgment will be given approved the sale according to the receivers' petition.
The land purchased by the companies includes five lots covering 36 dunam (nine acres) between Menachem Begin St., Shvil Akko Hagalil St., Hagedud Ha'ivri St. and Har Zion Blvd. According to the outline plan approved for the land last February, 60% will be zoned for business and commerce and 40% for the construction of 1,000 housing units. Construction will total 280,000 sq.m., and possible construction rights will be up to 1,280%.
The area is currently used for fruit and vegetable stands, peddling, and small businesses. There are also squatters and protected tenants there. According to the deal for the sale of the land, the buyers are receiving the land as is.
Published by Globes [online], Israel business news - www.globes-online.com - on July 15, 2015
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