Sheleg Textile Ltd. (TASE: SHLG) has bought a 21.25-acre lot in Los Angeles slated for the construction of 86 housing units for wealthy buyers. The company paid $4.5 million for the land, and expects to invest $35 million, not including financing costs, in development.
Sheleg expects to complete the design and obtain building permits for the project within a year and complete it by 2012.
In a separate development, Sheleg is conducting due diligence on a residential project in Las Vegas, and has deposited $500,000 in an escrow account for this purpose. The project comprises of 186 apartments in six buildings, two of which have been completed, and a community center. The company will pay the sellers $7.2 million when the due diligence in completed. The project is due to be completed in 2011.
Sheleg also announced that it is negotiating with Excellence Nessuah chief economist Shlomo Maoz to invest in the company.
Sheleg is a stock market shell. Real estate developer Abraham Roimi acquired 68% of the company earlier this week from ILD Insurance Co. (TASE: ILDH) chairman Ron Weissberg.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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