Movat Shamir entered into a series of agreements concerning the establishment of a mixed-use construction project that includes approximately 23,000 square meters of employment space, approximately 1,600 square meters of commercial space, a public assignment, 92 units in the form of micro units with an average area of 50 square meters And about 8,000 square meters of parking basements on land that it owns together with two additional bordering plots, owned by third parties. The company promoted together with the owners of the bordering plots of land, which became valid and enables the construction of the project.
The company promotes with the owners of the bordering plots architectural design procedures and the issuance of building permits for the project. Also, on January 4, 2023, the company, together with the owners of the bordering plots, entered into a sale agreement of all residential rights with a third party. The company’s share of the consideration amounts to approximately NIS 29 million plus VAT before tax.
In addition, at the same time, the company purchased parts of the rights of the owners of the plots bordering the employment areas in the project, in a cash sale agreement, and entered into combination agreements with them to purchase parts of their rights in the employment areas in exchange for construction services in the project. The extent of the company’s rights in the employment areas in the project are expected to amount to approximately 57%.
The construction costs of the project are expected to amount to approximately NIS 300 million and the company’s share of the construction costs is expected to amount to approximately NIS 200 million.
The company intends to finance its share of the project with equity and non-recourse closed banking financing which has been approved in principle.
The amount of equity expected to be invested by the company is estimated at approximately NIS 70 million. This activity is part of the company’s strategy to continue and expand its activity in the real estate field.