Parskovsky Sells 53 Apartments in Major Tender Amid Market Slowdown
The "Great Apartment Tender" organized by Parskovsky last month resulted in the sale of approximately 53 apartments, according to the company's management during an investor call. The company had initially announced that hundreds of apartments would be offered in the tender, spanning projects at various stages of construction and occupancy. The initiative generated significant interest, with over 100,000 individuals visiting the tender's website. A promotional campaign featuring actor Eli Finish, reportedly costing around 15 million shekels, accompanied the tender.
Despite the lower-than-anticipated number of actual sales compared to the number of units offered, the company's management described the sales pace as relatively good for the current period, which is experiencing a slowdown in the housing market. They explained that the number of inquiries and bids was substantially higher than the final sales count, partly due to overlapping offers for the same apartments. "We received many more inquiries and offers, some of the offers were simply overlapping for the same apartments, and in the end, it was completed with 53 sales," stated Moti Nachmias, Deputy CEO and CFO. He added that the company benefited from the extensive exposure and leads generated, and plans to follow up with participants to boost future sales.
The tender was launched by Parskovsky as a strategy to increase sales velocity amidst a cooling housing market. Participants had 72 hours to submit up to three bids for new apartments across the company's projects nationwide. Each apartment had a minimum price, and the highest bid above that threshold secured the sale. To participate, bidders had to deposit a bank guarantee of 25,000 shekels, which allowed for up to three bids on different apartments, though only one apartment could be won per guarantee. Parskovsky highlighted that minimum prices were set more than 10% below the actual market prices for similar apartments. Examples include a minimum price of 5.2 million shekels for a three-room apartment in Tel Aviv, 3.12 million shekels for a three-room apartment in Herzliya, and 1.98 million shekels for a three-room garden apartment in Haifa.
Bids submitted were kept confidential, and winners were required to sign sales agreements within 14 business days of notification. Separately, the article mentions that Migdal is acquiring 50% of Parskovsky's rights in long-term rental projects.
