Elbit to Invest Over $270 Million in Jerusalem Urban Renewal Project
Translated & summarized from Ice by baba
Elbit is advancing a major urban renewal project in Jerusalem, aiming to build 145 new apartments on Kadima Street. The company, which has been increasing its real estate investments, secured a mandate from residents and is partnered with Israel Klein. The project is projected to generate approximately 1.31 billion shekels in revenue with an estimated profit of 180 million shekels. CEO Eran Mazor noted that securing resident signatures and financing are crucial next steps.
The story in 5 lines · by baba
- Elbit will invest over 1.31 billion shekels in a Jerusalem urban renewal project.
- The project on Kadima Street aims to build 145 new apartments, with potential for 585 units.
- Elbit secured a mandate from residents and partnered with Israel Klein for the development.
- The company anticipates a profit of nearly 180 million shekels from the initiative.
- CEO Eran Mazor highlighted the need for resident signatures and financing to proceed.
Elbit, a company that has been expanding into the real estate market in recent years, is set to advance a significant urban renewal project in Jerusalem. The company recently strengthened its capital structure through share offerings and bond issuances, raising tens of millions of shekels to repay debt and fund projects. Elbit has now received the mandate from apartment owners at 4-45 Kadima Street in Jerusalem to proceed with a new residential development, following its win in a resident tender alongside partner Israel Klein.
This project, planned as a "Pinui Binui" (evacuation-construction) initiative, aims to build 145 new apartments, with the potential for up to 585 new units. Elbit will hold a 50% stake in the project. The company is currently in the initial phase, requiring the collection of signatures from at least 67% of residents to move forward. The estimated total revenue for the partnership from the project is approximately 1.31 billion shekels, with projected costs around 1.132 billion shekels, anticipating a profit of nearly 180 million shekels.
Elbit's share of the revenue is expected to be around 655 million shekels, with its share of costs at approximately 566 million shekels. These financial projections are based on an economic report by the partnership, estimating apartment prices at 27,200 shekels per square meter before VAT. The company cautioned that cost estimates are subject to change due to potential increases in commodity prices, particularly in light of ongoing security events.
CEO Eran Mazor stated that further steps are necessary to advance the project, including securing the required resident signatures, obtaining urban building plans (Taba), permits, and securing financing. This follows Elbit's recent success in Afula, where it received a building permit for a 525 million shekel project and decided to sell apartments to NVIDIA employees, with an estimated gross profit of 101 million shekels.
