The company plans to build a 450,000-sq.m mixed residential, commercial, and hotel project.
Nanette Real Estate Group NV (AIM:NAT; TASE:NANT.B1) has bought a 153,000-square meter lot in Budapest on which it plans to invest €350 million to build a 450,000-square meter mixed residential, commercial, and hotel project, and expects €450 million in proceeds from it. The company said that it plans to seek partners in developing the project.
The company bought the land through a joint venture with the Budapest municipality; the company owns 90% of the joint venture and the municipality owns the rest. The municipality has an option to sell its stake to Nanette for €2.2 million when the first stage of the zoning plan is completed, and Nanette has a three-year option to buy the municipality's stake. The lot, located five kilometers from the city center on the road to the airport, is currently zoned for public buildings and public facilities, but is undergoing rezoning.
This is Nanette's ninth project in Budapest. Nanette is a subsidiary of Olimpia Real Estate Holdings Ltd. (TASE: OLMP) and Meshulam Levinstein Contracting and Engineering Ltd. (TASE: LEVI).
Published by Globes [online], Israel business news - www.globes-online.com - on April 27, 2008
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