Gindi Nearing Deal With Owners Over Collapsed Balcony at Hadera Project

Developer set to pay over $2 million compensation to 29 owners after eighth-floor balcony at unoccupied block fell in December 2013.

Gindi Investments, a major property developer whose projects include Park Hadera in the central coastal town, is in advanced negotiations to provide 29 of the apartment owners with about 250,000 shekels ($72,000) per unit in compensation after a balcony at one of the project’s buildings collapsed last December.

The project consists of two nine-story buildings, each with 36 units. The building where the balcony collapsed, on the eighth floor, had received a certificate of occupancy, but only two units were occupied at the time. The other building was fully occupied when the collapse occurred. About a week later, city authorities ordered it evacuated due to concerns about potential construction flaws there as well.

After about a month of negotiations, a group of residents arrived at an initial agreement with Gindi Investments, through which the company agreed to pay affected apartment owners 7,500 shekels per month to cover expenses, including rental of accommodations elsewhere.

This preliminary agreement stated explicitly that the homeowners were not waiving their rights to assert additional claims. Some residents also received compensation for apartment units not being provided when initially promised. Many residents of the building that was fully occupied were transferred to hotels in Netanya, at the company’s expense.

Gindi Investments has been carrying out tests on the structural soundness of the apartments, but the test results have not yet been released.

Nimrod Glickman