The Hagag Group, held by Yitzhak and Ido Hagag, reported Monday morning that it purchased using its subsidiary Regency Hotel 45% of the rights to land in Bat Yam. Hagag will pay the investor group NIS 26 million for the rights.
The 0.75-acre lot was formerly owned by the Bat Yam municipality. The municipality published a tender for the lot, which was won by an investor group, led by Amos Maimon, with a NIS 59 million offer.
The lot has a pre-approved plan for the construction of public buildings. According to the sale contract signed by the investors, the purchase of the land from municipality was conditioned on the approval of a new plan for the complex and the approval of the sale by the interior minister.
If a new plan is not approved or the interior minister rejects the sale of the land, then the deal will be nullified and the payment returned to the buyers. The municipality is currently promoting a new plan for the lot; if it is approved, then the land will host 170 apartments with 18,700 square meters of space, employment or hotel space of 5,420 square meters, commercial space of 800 square meters, and publicbuildings on 250 square meters.
The Hagag Group hopes to build two 29-story towers with 170 apartments if the plan passes. Each tower willhave 21 floors of housing, 4 floors for offices, and two floors for commerce. The project marks Hagag Group’s first development in Bat Yam.
Regency, which paid out an initial installment of NIS 18 million to the investor group, notified the Tel Aviv Stock Exchange thatthe deal’s completion was conditional on the designation change of the lot.
The Hagag Group saysit will begin marketing the project as soon as the development plan is changed. “The Hagag Group strongly believes in investing in Bat Yam in general and specifically in the area close to the sea which is why we decided to expand our operations to that city,” said Ido Hagag this week.
Published by Globes [online], Israel business news - www.globes-online.com - on January 5, 2016
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