Reality Fund Wins Herzliya Land Deal at 50% Discount
The Israel Land Authority (ILA) successfully marketed a plot of land in Herzliya designated for 66 housing units, a rare occurrence in the central region. Reality Fund submitted the winning bid of over 42 million shekels, excluding approximately 2 million shekels in development costs. This price translates to about 670,000 shekels per housing unit, roughly double the cost in peripheral areas. Notably, the land's appraised value was 87 million shekels, meaning Reality Fund secured the property at a 50% discount. Seven other bids ranged from approximately 16 to 32 million shekels, with the minimum bid nearing 12 million shekels for the 2.5-dunam plot in the Neve Israel neighborhood.
Neve Israel, an established neighborhood in southern Herzliya near Ramat Hasharon, is characterized by a mix of single-family homes, older apartment buildings, and ongoing urban renewal projects. It offers proximity to Herzliya's city center and the Seven Stars Mall. Nearby, the new Galil Yam neighborhood and kibbutz boast housing prices around 40,000-50,000 shekels per square meter, with luxury apartments commanding higher rates.
In a separate tender, Reches Nadlan, a logistics and industrial real estate company owned by Arkin Capital, Tomer Katz, and Poalim Equity, acquired a 20.5-dunam plot in the Kiryat Gat Industrial Park for approximately 53 million shekels. This site includes rights for about 40,000 square meters of construction for storage, industry, and workshops. Reches Nadlan plans to develop a new project estimated at 200 million shekels to meet the needs of industrial and logistics users. The Kiryat Gat Industrial Park benefits from its location in a development zone, high accessibility to major highways, and a strong existing industrial base, making it an attractive location for businesses.
