an english text
Dankner firm buys south Tel Aviv lot
Company owned by Israeli billionaire Yitzhak Tshuva purchases poverty stricken neighborhood, plans to build 1,200 apartments at an estimated value of $170 mil
Ofer Petersburg
Published: 05.02.07, 17:57 / Israel Money
The Dankner firm, owned by Israeli billionaire Yitzhak Tshuva purchased a poverty stricken neighborhood in south Tel Aviv from contractor Yeshayahu Khakshouri.
The company plans to build 1,200 three-five bedroom housing units and a few penthouses on the lot.
Dankner purchased every building in the neighborhood, expect for one which will remain under Khakshouri's ownership.
According to estimates, Tshuva paid some $58 million for the lot. However, a certain portion of this amount will be given as compensation to some 200 families who have evicted the area and received alternative housing.
Dankner will be able to sell some 1,000 apartments. Assuming that the average apartment will go on the market for $170,000, the project's total value in sales could reach some $170 million.
Khakshouri will receive 28.5 percent of the revenues if prices are between $128,000 and $162,000 per apartment. If the prices reach between $154,000 and $188,000, Khakshouri will receive 34 percent of the revenues.
If prices go up to $179,000 - $214,000, Khakshouri will receive 40 percent and if the prices go higher, Khakshouri will receive 50 percent.
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Tel Aviv:
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