The Gabay Group will build a residential project that will include 386 apartments and another commercial and employment center with an area of ​​approximately 4,000 square meters in the city of Ashkelon. The company, through its subsidiary Gabay Manibim (100%), reported yesterday that the conditions for the purchase of land from private lessees as part of the restitution deal have been met. Gabay Purchased from the tenants who had joined together in the past as part of the “Parads in Savings” initiative, the possibility to purchase the land from the manager with an exemption from a tender and in return paid approximately NIS 10 million.
The complex, which was announced as a preferred housing complex, is subject to an approved residential permit, and the Gabay Group will work in the coming months to enter into lease agreements with Rami on 4 adjacent lots. According to the company’s assessment, and subject to the completion of detailed planning for the issuance of construction permits, the expected revenue from the project is estimated at approximately NIS 824 million (including VAT), while for the yielding property, which will remain in the company’s ownership, the Gabai Group expects annual revenue of approximately NIS 5 million per year. The cost of building the project is estimated at approximately NIS 617 million.
For the Gabbay Group, another project is under construction in the wine city of Ashkelon, which includes 354 housing units in 6 14-story buildings, established as part of the “Resident Price” program, with 30% of the apartments destined for the free market. The company is also promoting a project in the Barnea neighborhood of approximately 1,000 housing units, of which 700 apartments have been occupied so far, as well as another sheltered housing project in the City neighborhood.
Eli Gabbay, one of the owners of Gabbay Group: “The deal was made after a long negotiation and we finally purchased the land in one of the largest and developing neighborhoods in the city. We will constantly look for new land deals, mainly in the areas available for immediate construction in order to increase the stock of the company’s housing units.”
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