The Israel Land Authority (ILA) today closed the tender for the sale of land for construction of 60 housing units on a 4.7-dunam (1.175-acre) lot near Mayumana House in Jaffa Port. 16 bids were submitted in the tender. Informed sources said that some of the companies that submitted bids believed that the winning bid would be over NIS 100 million, substantially higher than the minimum price set, and might reach NIS 160 million, due to the location of the land and the accompanying construction rights.
In addition to the 60 housing units, the Urban Building Plan allows the winners to request a concession allowing up to 20% more construction rights.
According to the tender documents, the winner will have to construct a public parking lot, and may also have to preserve a small part of the existing building on the site. The Urban Building Plan also allows construction of commercial space in the future project. At the same time, the tender terms state that permission to build more than 30% of the volume of construction approved for the site will not be granted until traffic lights are installed at the intersection of Yefet and Yehuda Margoza Streets.
Sources inform "Globes" that the bidders in the tender include a number of buyers groups, Israel Canada ITR) Ltd. (TASE:ISCN), the Reality Fund (together with partners), Azorim Investment, Development and Construction Ltd. (TASE: AZRM), Yossi Avrahami, and other well-known real estate companies.
Since the buyer fixed price plan, which is "nationalizing" tenders for state-owned land in favor of the government program, real estate companies have been looking for lots that are not part of this program. Any tender published that allows the sale of housing units on the free market is attracting very high bids.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 25, 2017
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