Rani Zim Shopping Centers continues to expand its activity in the residential sector. The company updates that it won, through the Zim-Megido company, in equal shares with the ‘Almogim’ company, in a target price tender for the purchase of lease rights in 3 lots, with a total area of approximately 23 thousand square meters, in the southern entrances of the city of Haifa. In accordance with the plan Applying to the land, 406 housing units can be built on it, 80% of which will be marketed as part of the “target price” track, and the remainder will be marketed at free market prices. The housing units will be built in a project that will include 15 residential buildings, of which 13 are 6-story buildings each and 2 additional buildings of 19 floors each.
In exchange for the rights to the land, ‘Zim-Megido’ and ‘Almogim’ will pay a total of approximately NIS 71.6 million (without VAT), as well as development expenses in the total amount of approximately NIS 63 million. The signing of a lease agreement between Megido Izum and Almogim and Rami in connection with the construction of the project is expected to take place after the completion of the payments to the Authority. The expected revenues from the project (100%) are estimated by Zim at approximately NIS 740 million and the gross profit for it is estimated at approximately NIS 97 million. Date of receipt The land is expected in about two years.
Zim-Megido specializes in the initiation, planning and execution of residential projects throughout the country. The company has established thousands of units over the years, and currently has in its hands a backlog of projects amounting to approximately 1,750 units, and is also a partner in projects that include commercial and employment areas. Magido has 7 projects under construction with a scope of approximately 1,000 units, and another 11 projects in planning all over the country. In addition, Magido has an execution contracting arm, which has the highest classification on behalf of the Registrar of Contractors, which allows it to carry out the widest variety of works. Backlog of projects Megiddo’s current operation may yield total revenues of approximately NIS 2 billion in the next 5 years, alongside an expected gross profit of approximately NIS 500 million. Letzim-Megido projects throughout the country, including in Ofakim, Netivot, Migdal Ha’Emek, Ma’alot and more. Last May, Rani Zim Shopping Centers signed the deal for the purchase of Megiddo, in several stages, with a total investment of approximately NIS 307 million.
This month, Rani Zim Shopping Centers also updated on Zim-Megiddo’s winning another tender by the Israel Land Authority for the purchase of lease rights in 3 complexes for saturated construction and commercial areas out of 18 complexes in the Afiki Nahal neighborhood in Ofakim. According to the terms of the tender, 629 housing units and approximately 1,050 square meters of commercial space can be built on the lots, of which 409 housing units are at a target price.
Rani Zim Shopping Centers also updated this month on its winning a tender for the purchase of land in Rosh Ha’Ain, on which the company will build a 2-story commercial center, which will include approximately 5,800 square meters of commercial space for marketing by the company, and which will join the commercial centers branded under the “Zim Urban” brand.
Avishi Avraham, CEO of Rani Zim Shopping Centers: “Rani Zim Shopping Centers, through the company Zim-Megido, is experiencing a boom in residential construction throughout Israel, and we are constantly working to deepen the company’s activity in this area. The winning of the current tender is a significant milestone, as it is a significant residential project, which includes 15 residential buildings with a scope of 406 housing units and will be one of the most attractive in the area of the southern entrances of the city of Haifa. We are happy about the cooperation with Almogam and believe that the combination of forces will maximize the value for the buyers of the apartments in the project. This project is added to Zim-Megiddo’s win, which we announced about a week ago, in a tender for the construction of residential complexes with over 600 units in Ofakim. These moves are part of the strategy of Rani Zim Shopping Centers to expand its activity in the residential sector all over the country.”
Zvi Weiner, CEO of the Megiddo Group: “This is a prominent tender in the Naut Peres neighborhood in Haifa, near the Sami Ofer Stadium, the central employment area of Haifa – MTM and the train station. Another important thing is that this is a tender that will be marketed using a target price method and will allow young couples and families to purchase apartments at prices lower than the market“.