Rotstein Real Estate Secures Approval for 237-Unit Jerusalem Housing Project
Rotstein Real Estate announced a significant advancement in its urban renewal project located at Berel Locker streets 25 and 26 in Jerusalem. The company confirmed that the detailed urban building plan (Taba) for the "Pinui-Binui" (evacuate-and-build) project has been officially approved and published, fulfilling a key condition for the development.
The project aims to demolish two existing buildings containing 64 apartments and construct a new residential and commercial complex featuring 237 new housing units. Approximately 173 of these new apartments will be offered for sale on the open market, with the remainder designated as replacement units for the current residents. The development also includes around 200 square meters of commercial space.
Rotstein Real Estate is undertaking this initiative through a subsidiary in a 50-50 partnership with an unrelated third party. The partners have already secured signed agreements with over 77% of the rights holders for the existing 64 apartments. The projected revenue for the project is estimated at NIS 438 million, with anticipated costs of NIS 368 million, leading to an estimated gross profit of NIS 70 million, representing a gross profit margin of approximately 16%.
Despite the approval, the project's commencement is still contingent upon several standard conditions. These include obtaining a building permit, finalizing a closed bank financing agreement, the complete evacuation of current residents, and taking possession of the land. Rotstein Real Estate's CEO, Avishai Ben Haim, recently commented on the housing market, noting that the recent interest rate cut has reduced financing costs for both developers and buyers, signaling a positive development and an "encouraging shot in the arm" for the residential market, evidenced by increased activity in sales offices.
