A partnership of the Reality fund, Mishkenot Asher, and Nadlans has won an Israel Land Authority (ILA) tender in Jaffa Port with a NIS 182 million bid (not including VAT).
The tender is for the construction of 60 housing units near Mayumana House on a 4.7-dunam (1.175-acre) lot. The tender, which was closed to bids two week ago, attracted no fewer than 19 separate bids.
According to the tender documents, the minimum price for the lot was only NIS 26.9 million, nowhere near the winning bid. ILA figures show that the lot was appraised at NIS 77 million, meaning that the winning bid was 136% higher than the appraisal. The high winning bid highlights the great demand for the lot. A large proportion of the losing bids in the tender were also tens of millions of shekels higher than the appraisal, with the bids in the tender averaging more than NIS 100 million.
In addition to the 60 housing units, the Urban Building Plan allows the winners to request a concession allowing up to 20% more construction rights.
According to the tender documents, the winner will have to construct a public parking lot, and may also have to preserve a small part of the existing building on the site. The Urban Building Plan also allows construction of commercial space in the future project. At the same time, the tender terms state that permission to build more than 30% of the volume of construction approved for the site will not be granted until traffic lights are installed at the intersection of Yefet and Yehuda Margoza Streets.
Since the buyer fixed price plan, which is "nationalizing" tenders for state-owned land in favor of the government program, real estate companies have been looking for lots that are not part of this program. Any tender published that allows the sale of housing units on the free market is attracting very high bids.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 7, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017