Africa-Israel Investments Ltd. (TASE:AFIL) unit Africa-Israel Residences Ltd. (TASE:AFHS) today won the first tender to build a long-term rental housing project, in Herzliya, the Ministry of Finance announced today. The company will pay NIS 75 million for the land, zoned for the construction of 215 rental apartments. Under the tender terms, 54 of the apartments will be rent controlled.
Under the tender terms, construction will begin within a year, and will be completed in three years.
Africa-Israel Residences beat six companies in the tender: developers Shikun & Binui Holdings Ltd. (TASE: SKBN), Aviv Group; Guy and Doron Levy Ltd.; and Tidhar Ltd.; and financial institutions Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Menorah Mivtachim Holdings Ltd. (TASE: MORA).
Two more tenders have been published, one for rental housing in Ramat Hasharon and the other in Haifa. The Herzliya tender is the first sign of Minister of Finance Yair Lapid's plan to build 150,000 rental apartments within ten years.
In the coming months, tenders are due to be published for 390 apartments in the Gadna lot in Tel Aviv, and for 1,200 apartments at Tel Hashomer.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014
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