Acro Real Estate (TASE: ACRO) and Kata Group won the Israel Lands Authority auction for the Israel Military Industries (IMI) plot of land on Hashalom Street in central Tel Aviv with a bid of NIS 644 million plus NIS 67 million. Development costs.
This amount is five times the minimum bid requirement of NIS 140 million but is far below the price the quantity would have fetched in the era of zero interest rates. The plot has planning rights for 528 apartments and the offer reflects an average of NIS 1.34 million per apartment for the land.
Acro Real Estate will purchase a plot of land to build 364 apartments for NIS 368 million plus development costs of NIS 42 million. Kata Group will purchase a plot of land to build 164 apartments for NIS 276 million in addition to development costs of NIS 25 million. Acro and Kata were the winning bids out of 12 submitted.
The two marketed plots cover an area of 5 dunams (1.25 acres) for high-rise apartments with commercial space at street level. Overall, there will be 1,097 residential units on the IMI plot, a large portion of which are small apartments of 50-70 square metres. The plot will contain buildings 7-9 storeys high, as well as 23-storey buildings on the edge of the plot, a 52-storey tower to the northeast and another 5 acres of public open space.
The ILA said: “This is another vote of confidence by real estate developers in the possibility of building new residential, commercial and office projects. We will continue, along with all parties we work with in government and local government, to carefully plan and design housing, offices and commercial spaces across the country.” , so as to meet the characteristics and needs of the growing audience in the short and long term.
Published by Globes, Israel Business News – en.globes.co.il – on May 6, 2024.
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