The Israel Land Authority has recently published the result of the tenders for marketing land in the center of Modi'in near the Azrieli shopping mall and the railway station. 57 bids were submitted to buy lots in four compounds zoned for construction of 420 housing units with a commercial facade.
In the largest compound, zoned for construction of 196 housing units, Africa-Israel Investments Ltd. (TASE:AFIL) submitted the winning bid of NIS 121 million, including development expenses. The bid reflects NIS 617,000 per housing unit for the land, the highest amount per housing unit of the all the winning bids.
In the compound zoned for 92 housing units, Hanan Mor Group - Holdings Ltd. (TASE:HNMR) made the winning bid of NIS 44 million, including development expenses. The price reflects NIS 478,000 per housing unit for the land, the lowest amount per housing unit of all the winning bids.
In the compound zoned for 88 housing units, Zilbermintz made the winning bid of NIS 51.4 million, including development expenses. The price reflects NIS 584,000 per housing unit for the land.
In the compound zoned for 44 housing units, Haim Zaken Construction and Investments made the winning bid of NIS 25.8 million, including development expenses. The price reflects NIS 586,000 per housing unit for the land.
The value of a few thousand sq.m. of zoned for construction of a commercial facade in each project should be deducted from the prices. Note that due to the proximity of the land to the Azrieli mall, the value of the commercial facade is lower than the value of commercial space in a neighborhood with no supply of commercial space.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2015
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