Sources inform ''Globes'' that the Ministry of Finance plans to take over the Gadna lot in south Tel Aviv for a rental housing project. The plan follows the first two tenders for rental housing projects in Herzliya and Ramat Hasharon.
In March 2013, Halamish Government-Municipal Company for Housing and Urban Renewal in Tel Aviv-Jaffa signed an agreement with the Ministry of Finance and the Ministry of Construction and Housing to build 300 apartments on the Gadna lot in the Neve Ofer neighborhood in south Tel Aviv. The agreement aimed to solve Halamish's debt to the Ministry of Finance and generate revenue for Halamish to purchase apartments for public housing in the city. Halamish undertook to publish a tender for the lot, but never did so, and the Ministry of Finance is now seeking to transfer the lot to a developer for a rental housing project.
The lot's value in the Halamish deal was NIS 80 million. If the lot is sold for a rental housing project, the developers can buy the land for much less, because of government subsidies for rental housing projects.
The Ministry of Finance has confirmed the details, saying, "The Ministry of Finance is determined to publish tenders for rental housing in high-demand areas, and opposes keeping lots empty and unused in the heart of demand areas. The sale of the Gadna lot will increase the supply of long-term rental apartments in the center and the inventory of public housing."
Published by Globes [online], Israel business news - www.globes-online.com - on February 19, 2014
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