Africa Israel Housing, partners plan luxury housing complex in Ramat Gan

Africa Israel Housing (TASE:  AFHO) yesterday announced the acquisition of land in Ramat Gan, together with Bonei Hatihon and Roav Israel, also a real estate company.

The acquisition was carried out as a combination deal with its owners, who retain a share.

The partners intend to build three luxury 25-storey residential high-rises with 300 apartments on the land.

Actually, the land in question is zoned for industry. Before the project can commence, the partners need to have it reclassified.

Africa Israel Housing, a subsidiary of Lev Leviev's Africa Israel (TASE: AFIL) , owns 51% of the project. Bonei Hatihon owns 26% and Roav owns 23%.

The original owners of the land will receive 38% of the rights and apartments to be built, and the partners will receive 62%, proportional to their share of the project.

Also, the original owners will be entitled to a bonus if revenue from the project exceeds a certain sum set in the agreement between the parties.

Africa Israel Housing CEO Yoram Keren commented that the acquisition follows the company's strategy of increasing its activity in the greater Tel Aviv area, particularly in Ramat Gan.