The company and a Romanian partner will also build a €250 million residential project in Bucharest.
Arison Holdings Ltd. subsidiary Housing and Construction Holding Co. Ltd. (Shikun u'Binui) (TASE: HUCN) will buy a 125-acre lot for €20 million on Lake Balaton in Hungary through a subsidiary in which it owns a 50% stake. The company plans to build a 250,000-sq.m. residential, commercial and resort project on the site at an investment of €250 million. Housing and Construction will invest half of this amount.
The company said that although it made the highest bid in the tender for the lot, the Hungarian government had the right to foreclose the land. If the government gives its final approval, Housing and Construction’s Hungarian subsidiary will finance most of the purchase through a bank loan.
In a separate deal, Housing and Construction has bought a lot for €3.5 million in Bucharest, Romania, through its Romanian subsidiary in which it owns a 50% stake. The company also bought the rights to an adjacent lot for €31.5 million, creating a 25-acre lot. The company plans to build a 2,500-unit housing project on the site at an investment of €250 million. Housing and Construction will invest half of this amount.
Published by Globes [online], Israel business news - www.globes.co.il - on December 20, 2006
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