Immediate report (“Allied”)

15 Jun, 2020

The Company is pleased to report that yesterday, the 14th of June 2020, in the afternoon, it received the decision from the tender committee of the Israel Land Authority (“ILA”), whereby the Company together with Allied Real Estate Ltd. (“Allied”), won the tender for the lease of a 4.5 dunam plot of land (which constitutes the K Complex) within the “City Gate” complex, which will be built at the entrance to Jerusalem (“the tender”, “the plot”).

Immediate report (“Allied”)
Ramat Gan 15 June 2020
 
To                                                                    To
The Israeli Securities Authority                      The Tel Aviv Stock Exchange Ltd
www.isa.gov.il                                                 www.tase.co.il
 
                                                                       
                                                                       
                                                                                                                 Immediate report 
 
 
The Company is pleased to report that yesterday, the 14th of June 2020, in the afternoon, it received the decision from the tender committee of the Israel Land Authority (“ILA”), whereby the Company together with Allied Real Estate Ltd. (“Allied”), won the tender for the lease of a 4.5 dunam plot of land (which constitutes the K Complex) within the “City Gate” complex, which will be built at the entrance to Jerusalem (“the tender”, “the plot”).
The plot is located at the main entrance to Jerusalem from Highway 1, between the International Conference Center and the Central Bus Station and is adjacent to two lines of the light rail train and the new fast train station, that connects Jerusalem, Ben Gurion Airport and Tel Aviv, and enjoys superb access to public transportation and to pedestrian thoroughfares.
In accordance with the tender offer, the cost of the land stands at approximately NIS 180m plus VAT, with an additional NIS 29.6m plus VAT of development costs to be paid to the ILA.  Therefore, the total cost of the land stands at approximately NIS 210m plus VAT (the Company’s share is c. NIS 105m plus VAT).
The lease agreement to be signed is for a period of 98 years, with the option for an additional 98 years.
The plot is zoned for the construction of office towers and a pedestrianized commercial complex with an option for a hotel and special rented apartments, consisting of approximately 78,000 sqm above ground (main and service) according to the existing planning permission from the city and approximately 102,900 sqm above ground (main and service) according to the revised planning permission currently in the approval process (“the project”).
The Company and Allied will work jointly on the planning and construction of the project on the plot and its management as a yielding asset, with each one’s share of the project at 50%.
The construction cost of the project (including the land component) is estimated by the parties at c. NIS 1.1bn (Company’s share of c. NIS 550m)
The estimated timetable is 1-2 years to complete planning and approval process until the start of construction and another 5-6 years for the construction of the project.
 
Sincerely,
Amot Investments Ltd
 
 
 
Signed by: Avi Mousler, CEO
Judith Zynger, CFO