Israel Canada Real Estate Company (TASE: ISCN), controlled by Assaf Tuchmeir and Barak Rosen, has announced the sale of a 2,610 square meter plot of land in south Tel Aviv. The land is located between Harekevet and Hagra streets, near the La Guardia interchange and the central bus station in old Tel Aviv. Israel Canada sold the land to Effi Capital and Shoval Nahshon for NIS 468 million, having bought the land less than three years ago in 2019 for NIS 219 million, less than half the price.
Israel Canada had planned to build a mixed-use project on the site comprising 137 housing units, a hotel, offices and commercial spaces. It is estimated that an apartment would currently sell for between 60,000 and 65,000 NIS per square meter, so that a 91 square meter apartment would sell for between 5.4 and 5.9 million NIS.
Israel-Canada estimates that completing the sale will provide it with free cash flow, before tax, of about 300 million shekels.
Although it has been reported that the Tel Aviv land market is cooling, the location of the land near the Ayalon highway, the train station and three planned tram lines as well as a metro station in a more distant future, contributed to its value.
Effi Capital’s Chairman and CEO, Effi Shaked, said: “Finding a major deal in the heart of Tel Aviv’s demand areas was our goal for the current year. The purchase of land from Israel Canada is a step and a strategic objective of the company for the in the coming years to develop its real estate activities in these areas. I attach great importance to the promotion of projects combining a great diversity close to public transport. These offer the territory a strong potential for development and also contribute to marketing and sales.”
Published by Globes, Israel business news – en.globes.co.il – on April 4, 2022.
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