Resort to rise on site of Delta Galil dye plant

The Delta Galil textiles company will be selling the Nahariya plot where its iconic dye plant once stood. The company signed an agreement yesterday, giving a group of four companies a four-month option to buy the 258-dunam plot of land for $24 million plus VAT. Payment would be effected in installments over four years.

Delta Galil has owned the land since 1982. It inherited it when acquiring the Miller corporation. The plant was shuttered five years ago. The buyers paid NIS 2 million for the option, which they won't get back if they don't exercise it. They are also depositing NIS 3 million to show their seriousness, which they will get back if they back out of the deal. Assuming they do go ahead with their plan, that money will serve as a down payment. The buyers intend to build housing and a tourist resort on the land. Delta Galil says that if the buyers exercise their option, it should be posting pretax capital gains of $18 million-$20 million. (