IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Property and Building Ltd. (TASE: PTBL) and Electra Ltd. (TASE: ELTR) subsidiary Electra Real Estate Ltd. (TASE:ELCRE) have made their first joint investment in Ukraine. Property and Building will own two-thirds of the project, and Electra Real Estate one third.
The two companies signed an MOU to buy 16.6% land rights to a 500-acre site for $33 million, giving a value of $200 million to the site. The rest of the land was acquired through combination deal with the landowners in exchange for 7.5% of future proceeds.
The complete project will include more than 50,000 housing units and over five million sq.m. of office, commercial and entertainment space. Market sources predict proceeds from the project at up to $4 billion, and that sales will begin this year.
This is the Property and Building and Electra Real Estate’s fourth joint venture. They are involved in two projects in India at a total investment of $290 million, and bought a high-tech park in Cologne, Germany for €107 million in March.
Published by Globes [online], Israel business news - www.globes.co.il - on April 25, 2007
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