Dan Bus Company is preparing for another development on its land and holding talks on the sale of 50% of its rights of the main portion of the "Dan Garage" in Bnei Brak to Ashtrom Properties - for NIS 85 million.
The property already has a plan for the construction of two office buildings with 85,000 square meters of built space, but the companies may choose to change its designation in the future.
The 3.8-acre property in Bnei Brak currently serves as a Dan depot and parking garage. Two months ago, a fire erupted at another Dan location used as a parking lot - burning dozens of the company’s buses. Market estimates put the fire damage at NIS 30-40 million.
Real estate plans
Ashtrom Properties, part of the Ashtrom Group, said on Monday that the company intends to buy from Dan half the rights for 3.3 acres of the property to build office space, with the other half acre to be sold by Dan to a third party.
Ashtrom said the talks did not guarantee the signing of a binding agreement.
Last month, sources informed "Globes" that Dan’s property division was in advanced negotiations with the Delek Group over the sale of an office building for NIS 245 million. The building, on an 11,000 square meter plot, is intended to become the new headquarters for the Delek Group, which is currently based in Netanya.
Dan is also involved in other real estate projects, including the development of the luxury residential tower on Arlozorov 17 in Tel Aviv. The 29-story structure, on the site of the old Dan depot in Tel Aviv, will house 131 apartments.
Published by Globes [online], Israel business news - www.globes-online.com - on December 8, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015