The deal was contingent on previous developer Resido cancelling its contract with the seller.
Kardan NV (TASE: KRNV;AEX:KARD) subsidiary Kardan Israel Ltd. (TASE:KRIS) has signed a combination deal for a lot in Beer Yaakov zoned for a 365-unit residential project. Kardan will bear the project's full construction costs, while the landowners will receive 19% of the apartments. Kardan Israel is carrying out the project through wholly-owned subsidiary Kardan Real Estate Initiation and Development Ltd.
Kardan will guarantee the landowners' NIS 18.5 million credit and the NIS 15.5 million interest on that credit.
Beer Yaakov is located between Rishon LeZion and Ness Ziona, about 15 kilometers from Tel Aviv. On the basis of average land prices in Beer Yaakov, a four-room apartment in the project should sell for NIS 1 million and a five-room apartment should sell for NIS 1.2 million. Total sale proceeds for the project are estimated at NIS 400 million, of which the landowners will get around NIS 76 million.
The deal was conditional on the landowners cancelling a prior contract with developer Resido Ltd., a subsidiary of financially troubled Miloumor Ltd. (TASE: MILO), controlled by chairman Freddy Robinson.
Published by Globes [online], Israel business news - www.globes-online.com - on May 5, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009