Ashtrom, Kardan to Buy 19% Stake in Tel Aviv Lot for $65 Million
Translated & summarized from Bizportal by baba
Ashtrom Properties and Kardan Real Estate have submitted a winning bid of approximately NIS 245 million for a four-dunam plot in East Tel Aviv, pending court approval. The companies will jointly acquire about 19% of the rights for NIS 46 million plus VAT. The site is zoned for housing, employment, and commerce, with potential for increased density under a new master plan. This acquisition reflects a significant investment in a developing urban area near public transportation.
The story in 5 lines · by baba
- Ashtrom Properties and Kardan Real Estate will buy 19% of a Tel Aviv lot for NIS 46 million.
- The total bid for the four-dunam plot in East Tel Aviv is approximately NIS 245 million.
- The land is designated for 103 housing units and significant commercial and employment space.
- The deal requires approval from the Tel Aviv Magistrate's Court.
- The site is located near a light rail station and major transportation routes.
A plot of land spanning approximately four dunams (about one acre) in the Yad Harutzim area of East Tel Aviv, near the light rail and Mesger Street, has been put up for sale with a winning bid of approximately NIS 245 million (about $65 million). Ashtrom Properties and Kardan Real Estate are set to jointly acquire about 19% of the rights to the land for approximately NIS 46 million plus VAT, pending approval from the Tel Aviv Magistrate's Court. The site is designated for 103 housing units, alongside roughly 22,000 square meters for employment and 4,400 square meters for commerce, totaling about 27,000 square meters of non-residential space within a mixed-use urban complex. The planned construction can reach up to eight stories, with potential for increased rights if the city's new master plan, TA/5500, is approved. The site currently features old industrial buildings, garages, and offices slated for demolition.
The winning bid represents a significant increase from the companies' initial offer of NIS 210 million, which was improved to NIS 245 million after negotiations. This final offer surpasses a previous appraisal of NIS 240 million for market value and NIS 200 million for a quick sale in a liquidation process. Ashtrom Properties will acquire 75% of the sold rights, and Kardan Real Estate will purchase the remaining 25%. The land is being sold by several owners, including Acro Real Estate and Yebalim City.
Located about 150 meters from a light rail station, the property is situated between Mesger, Yisrael Tal, Rivlin, and Rabbi David Bazov streets, close to the Ayalon highways and Begin Road. For Ashtrom Properties, this acquisition marks a further investment in a mixed-use urban area undergoing renewal, reflecting the group's focus on transportation infrastructure that enhances land value. Kardan Real Estate continues to expand its residential activities in the Gush Dan region. The process from this point forward involves clearing existing structures, obtaining permits, and actual construction, a lengthy path even after court approval. The price, reflecting about NIS 60 million per dunam, highlights the willingness of established companies to pay a premium for land near the light rail in East Tel Aviv, even while the deal awaits final judicial confirmation.