Israel Land Authority yesterday published a tender for marketing land in Herzliya zoned for construction of 1,468 housing units according to the buyer fixed price plan. 294 housing units, 20% of the total, are reserved for Herzliya residents. The tender is the largest currently being marketed. The land will be divided into six plots, and developers can bid separately for each of them until the end of September.
Located on the site of Kibbutz Glil Yam, the land being marketed is part of the 2,943 housing units given final approved for construction a few days ago. The land for the remaining housing units will be marketed later by the state after the conditions for it are fulfilled, including tests by the Herzliya Wastewater Purification Plant and removal of the restrictions imposed by the Ministry of Defense. The rest of the land will also be marketed mostly under the buyer fixed price plan. The approved plan also includes commercial and business space, a park, and public buildings.
The way to publication of the tender was opened after a dispute between the state and the Herzliya municipality was settled in January, when the parties signed a roof agreement. Hundreds of housing units marketed in earlier tenders are currently under construction near the land in question, including a long-term rental project being built by Africa-Israel Investments Ltd. (TASE:AFIL).
In the buyer fixed price plan, the price of the land is set, and the winning bid is the one offering the lowest price per sq.m. built to the public for the housing units. This ensures the lowest price for the housing units to be marketed by the developer to those eligible under the plan. When the winning developers are selected, the housing units in the project will be marketed through a lottery for those eligible, defined as married people without homes and single people over 35.
The Herzliya tender follows yesterday's marketing of land in Rosh HaAyin zoned for construction of 1,378 housing units under the buyer fixed price plan. Under the plan, the initial price of the units will be NIS 979,000 per 100-sq.m. housing unit and NIS 1.06 million per 110-sq.m. housing unit.
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2016
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