In addition to a long list of buyer fixed price tenders all over Israel scheduled for publication in the next 18 months, the Ministry of Finance has decided that another tender will be published for Herzliya. This tender, which is awarded according to the cheapest apartment prices bid rather than the highest bid for land, concerns a large portion of land on the Glil Yam site in the city that has not yet been marketed.
Following meetings in recent weeks between Minister of Finance Moshe Kahlon and Herzliya Mayor Moshe Fadlon, the parties agreed that the state would publish tenders for 2,000 housing units in by Kibbutz Glil Yam. It was also decided that 500 of these housing units would be reserved for Herzliya residents.
Fadlon said, "This is revolutionary news for young people in general, especially those in Herzliya, and a significant step for the future generation of Israel."
Simultaneously with the scheduled buyer fixed price tenders, another project being built, also on the same site, is designed to increase the supply of rental apartments in the city. This involves 273 housing units under construction in Glil Yam under a tender published by the Ministry of Finance and Apartment for Rent - the Governmental Company for Housing and Rental. The winning bid in the tender, which was closed 18 months ago, was by Africa-Israel Residences Ltd. (TASE:AFHS), which is building five nine-storey high-rises on the site.
As in every state tender, 25% of the apartments in the project are reserved for those defined as eligible by the Ministry of Construction and Housing, who can rent the apartments at less than the market price. After 20 years during which the developer undertook to rent and manage the apartments in the project, the developer is entitled to sell them on the free market.
A perusal of the list of buyer fixed price tenders that have already been published, or which are slated for publication in the near future, shows that as of now, most of the planned tenders are outside the central region. The central region cities in which tenders are scheduled for publication, and for which notices have already been posted on the Israel Land Authority website, are Rosh HaAyin, Rishon Lezion, Lod, Beit Dagan, and now, it seems, Herzliya.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2015
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