23/02/2024 4:34 PM

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Israel Canada doubles its money on Tel Aviv land sale

Real estate company Israel Canada (TASE: ISCN), controlled by Assaf Tuchmeir and Barak Rosen, has reported the sale of a 2,610 square meter lot in south Tel Aviv. The lot is between Harekevet and Hagra Streets near the La Guardia Interchange and the Old Tel Aviv Central Bus Station. Israel Canada has sold the land to Effi Capital and Shoval Nahshon for NIS 468 million, having bought the land less than three years ago in 2019 for NIS 219 million, less than half the price.

Israel Canada had planned to build on the site a mixed-purpose project including 137 housing units, a hotel, and office and commercial space. Estimates are that apartment would currently sell for NIS 60,000-65,000 per square meter so that a 91 square meter apartment would sell for between NIS 5.4 million and NIS 5.9 million.

Israel-Canada estimates that the completion of the sale will provide it with free cash flow, before tax, of about NIS 300 million.

Although there have been reports that the Tel Aviv land market is cooling, the lot’s location near the Ayalon Highway, railway station and three planned light rail lines as well as a Metro station in the more distant future, has contributed to its value.

Effi Capital chairman and CEO Effi Shaked said, “Entering a major deal in the heart of demand areas of Tel Aviv was the aim we set ourselves for the current year. Buying land from Israel Canada is a step and strategic target by the company for the coming years in expanding its real estate activities in these areas. I see major importance in promoting projects combining broad mixed-use close to mass-transit systems. These provide the area with high enhancement potential and also help in marketing and sales.”

Published by Globes, Israel business news – en.globes.co.il – on April 4, 2022.

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