Five groups submitted bids in the second stage of the Tel Aviv wholesale market project, for the construction of four 44-floor residential high-rises. Gindi Investments Ltd. won with a bid of NIS 333 million.
The market's owners - the Tel Aviv-Jaffa Municipality, Tnuva Food Industries Ltd., and the Wholesale Market Company - received four other bids for the lot for the first high-rise from Canada Israel Development Corporation, Acro Real Estate, Hagag Group Real Estate Development Ltd. (TASE: HGG), and a group of French investors.
In a notice to the TASE, Hagag Group had said that the agreement reached was different from the wholesale market's first stage, which was also won by Gindi Investments and Blue Square Real Estate Ltd. (TASE: BLSR). Hagag Group said that the winner in the offer to sell would buy the rights to one of the four high-rises, and that the sale process included an option to buy three additional high-rises. It said that if one company wins the tender for the first high-rise, it would have the first option to buy the project's second high-rise within 12 months of the signing of the sale agreement. If the company exercises the option, it will have an option to buy the third high-rise within 12 months from exercising the first option. If the second option is exercised, the company will have an option to buy the fourth high-rise within 12 months from exercising the second option.
The price of the land in each option is the same as the proceeds for the first high-rise, plus the linkage differential to the Index of Input in Residential Building and 4% annual interest.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2013
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