Israel Land Development Company (TASE: ILDC) has received a building permit for its OR residential project in the Pantelimon neighborhood of Bucharest. The company expects to record NIS 1.42 billion revenue and post a 31% gross profit margin on the project. The share rose 13% on the news.
Israel Land will build 1,488 apartments in 12 high-rises and 10,000 square meters of commercial space on a 13.5-acre site that it bought in May 2006. The project will be built in four stages, with the first stage comprising 615 apartments in five high-rises. The marketing of these units will begin in September.
Israel Land chairman and CEO Ofer Nimrodi said, "This is a great opportunity because there are few land reserves of 12.5 acres or larger with building permits in Bucharest. The adjacent Atlantis project was launched nine months ago, and most of its apartments have already been sold. I predict that our project will generate higher profits than similar projects in Warsaw, where we are now delivering the 270 apartments in the first stage with great success."
Nimrodi added, "Israel Land owns land for residential developments with 3,500 apartments in Eastern Europe, in Poland, Romania, and Moldova."
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2008
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