Aura Investments Ltd. (TASE:AURA) has received approval for validation from the Tel Aviv District Planning and Building Commission for an urban renewal project in the Morasha neighborhood in eastern Ramat Hasharon, sources inform "Globes." The project provides for construction of 687 new housing units in place of 180 old ones, making it the most substantial construction project in Ramat Hasharon in recent years.
The new construction will be in six 20-storey buildings, plus one six-storey building. The existing tenants will receive an apartment 53 sq.m. larger than their current one, and it is believed that the new apartment will be worth twice as much as the old one.
Aura is considering cooperation with the Ramat Hasharon municipality in marketing the apartments to local residents. Experts predict that the starting price will be NIS 1.6 million for a 75-sq.m. three-room apartment, NIS 2.2 million for a four-room apartment, and NIS 2.5 million for a five-room apartment. Aora won the project in a tender conducted by Rimonim, the Ramat Hasharon economic corporation, and Ramat Hasharon municipal company Yesodot in March 2013.
The Local Planning and Building Commission approved the plan in December 2013, with the District Planning and Building Commission now following suit. The company has managed to obtain the signatures of over 85% of the owners of rights in the site on a binding urban renewal agreement. The new project will be bigger than the previously largest urban renewal project in the city, in which 588 housing units are currently under construction. The recently occupied Rimonei Tidhar urban renewal project, by Tidhar, contains 200 housing units.
Actually, it is doubtful whether such a future project will be carried out under the new outline plan being promoted by the municipality. Ramat Hasharon Mayor Avi Gruber, who has been in office a year, has frequently stated that under the new outline plan, "Projects of the National Outline Plan 38 type will be used for the Morasha neighborhood, instead of urban renewal projects creating 30-storey towers." Gruber also contacted the Commission, while emphasizing that he was merely talking, not objecting. He added alternatives, and recommended reducing the number of housing units by 5%. Most of the objections to the plan are due to excessive congestion in the city that is overburdening infrastructure and is projected to put an additional load on transportation in the city.
Note in this context that Morasha Interchange from Highway 4 is already in the planning stages, but implementation of the Aora plan does not depend on it. Aora owner and CEO Jacob Atrakchi said, "The District Planning and Building Commission's approval constitutes a significant milestone in promoting the project, which comes on top of a long series of projects we are now promoting in order to meet the large-scale demand for modern and accessible housing in high-demand areas. Urban renewal projects in high-demand areas are the future of the real estate sector in Israel. Insofar as the state continues to encourage and allow urban renewal projects in these areas, more and more young couples and families will be able to realize their dream of buying an apartment."
Ministry of Internal Affairs Tel Aviv District Planning and Building Commission planner Naomi Angel said, "The plan significantly improves the quality of life for residents in the eastern part of the city. This urban renewal project includes widening the streets, a neighborhood avenue along an active street that includes commerce, a park, preservation of the existing trees, and more space for public buildings for the benefit of all the residents in the area."
Yesodot Pituah Vetikhnun Ironi CEO Jacob Yelovich said, "Approval of the project in Morasha is first of all good news for the neighborhood residents. As someone who has been leading a unique model of urban renewal administration for the past five years, I'm proud that we succeeded in implementing an urban renewal plan in which the tenants receive the most ever granted, in addition to the most extensive environmental housing and development specifications."
The Ramat Hasharon municipality said, "We are studying the decision."
Published by Globes [online], Israel Business News - www.globes-online.com - on February 5, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017