Kibbutz to receive 34 apartments in exchange for land returned to the Israel Land Authority
Geshem Holdings reported on the advancement of a 488-apartment project in Migdal HaEmek. The Israel Land Authority is launching a reform to shorten appraisal objection procedures. Additionally, Azorim Living will purchase 26 apartments in Jerusalem for long-term rental for approximately 76 million shekels.
Development deal in a kibbutz
Geshem Holdings will advance 488 apartments in Migdal HaEmek on land returned by Kibbutz Kfar HaHoresh.
Geshem Holdings reported to the stock exchange that it has entered into an agreement with Kibbutz Kfar HaHoresh in the Lower Galilee to develop a residential project in the western neighborhood of Migdal HaEmek. As part of the deal, Geshem will receive the right to purchase from the Israel Land Authority (ILA), with a tender exemption, plots covering about 46 dunams, allowing for the construction of 488 housing units for the free market on lands returned by the kibbutz to the ILA.
Kfar HaHoresh chose to retain rights for the construction of 34 housing units for its own use, with an estimated value of 46 million shekels.
Kibbutz Kfar HaHoresh, part of the Emek Yizra'el Regional Council, was founded in 1933. After evaluating several developer proposals, the kibbutz selected Geshem as its project partner.
Kibbutz Kfar HaHoresh was represented by attorneys Dor Avineri, Maor Zilcha, and Or Nevo (Lipa & Co.). Geshem was represented by attorneys Beni Lev Koren and Roi Shoshani (Lev Koren, Shoshani, Zini Ben Naim).
According to Geshem Holdings, the company is already advancing the "HaHoresh" project in the city, which includes 410 units. The new deal may increase the total volume of units Geshem is advancing in Migdal HaEmek to approximately 900.
Bureaucratic reform
The Israel Land Authority is implementing a reform in the system of objections to real estate appraisals to change processing times. Previously, the average procedure lasted over two and a half years, including 200 days for an initial objection and 700 days in the objections committee.
Under the new framework, cases where the payment demand exceeds two million shekels will be reviewed by a single instance instead of two separate appeal stages. Ten district objection committee panels have been established nationwide. The reform aims to reduce the initial processing time to 150 days and committee processing to 220 days. Objections will now be submitted directly to the government appraiser via dedicated digital systems.
Rental market
Azorim Living is purchasing 26 apartments from Azorim in its Jerusalem Arnona project for approximately 76 million shekels. The units are intended for long-term rental for at least ten years. The expected annual rental income is about 2.4 million shekels. The fair value of the apartments, considering the rental period limitation, is approximately 81.3 million shekels.
