Levinstein Properties Ltd. (TASE: LVPR) has significantly revised the value of its assets upwards by NIS 180 million, mainly because of the fair value of the land of the Old Central Bus Station in South Tel Aviv.
Levinstein Properties owns the land in a 50%-50% partnership with Shikun & Binui Holdings Ltd. (TASE: SKBN). Levinstein's 50% stake was listed as worth an overall NIS 460 million, at the end of the third quarter of 2021. The land is zoned for a major residential project and since Levinstein acquired its 50% stake in 2015, the value of the land has doubled.
Levinstein first acquired a 23% stake in the land in 2011, for less than NIS 40 million. In 2015, Levinstein invested a further NIS 150 million to increase its stake in the land to 50%, so that overall it has invested less than NIS 200 million in land listed at a value of NIS 460 million and which some sources say is worth NIS 600 million.
The land at the 'unfashionable' Old Central Bus Station neighborhood covers 35 dunams (8.75 acres). According to Levinstein, in February 2020 a plan was approved for the construction of 900 apartments and 117,000 square meters of office and commercial space. This is part of a wider plan for what is called the "Shomron Complex" which will include overall 1,300 apartments and 153,000 square meters of office and commercial space on 80 dunams (20 acres) of land between Menachem Begin, Hagdud Ha'Ivri, Hanegev and Salomon Streets.
Levinstein expects to receive a building permit for the project within two years.
Published by Globes, Israel business news - en.globes.co.il - on January 16, 2022.
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