A first: A ‘vacate and redevelop’ urban renewal project including a municipal kindergarten and retail space gets underway (MAGDILIM)

Bank Leumi will make financing of approximately ILS 500 million available to Aura Israel, which is constructing the mixed-used project of 240 residential units, retail space and a municipal kindergarten that it will build and transfer to the Municipality for its use

16.01.2019 | Carmela Cooper

For the first time: A vacate and redevelop project that is to include construction of a municipal kindergarten by the developer. The buildings in question are located at 90-102 HaRoeh Street in the center of Ramat Gan. Under the terms of the project, seven existing buildings – comprising 80 apartments and 12 stores – will be vacated and demolished and, in their place, three new residential buildings comprising 240 apartments will be constructed. According to the report, the company has vacate and redevelop contracts in place with all the residents, the project is going ahead, and the tenants will be vacated from their homes. Furthermore, it was reported that “According to the city zoning plan, one of the conditions for issuing the building permit is that the kindergarten will function as a municipal kindergarten in coordination with the Education Department of the Ramat Gan Municipality.

Residential, retail and a kindergarten

The zoning plan applicable to the land calls for the demolition and evacuation of all the buildings currently on the land and the construction of new buildings to include 240 residential units, 530 sqm of retail space and 150 sqm of public space, intended for the building of a municipal kindergarten that will, as mentioned, be transferred to the Municipality for its use. About 160 of the 240 apartments will be sold on the open market by the company, as will the retail space.

Financing at a scope of approximately ILS 500 million

The company has signed an agreement with Bank Leumi whereby it will make financing of ILS 500 million available to Aura Israel Development and Investments Ltd. for the purpose of constructing the project. As part of Bank Leumi’s support of the project, it will provide credit for construction of the project as well as for guarantees in favor of the landowners and purchasers of the apartments in the project. The mix of apartments is expected to be varied and will include apartments of two to five rooms as well as penthouses and garden apartments.

Aura, headed by CEO Jacob Atrakchi, was represented by Adv. Adi Tal of law firm Atrakchi & Co.

Bank Leumi was represented by Adv. Assaf Englard, Head of the Banking and Finance Department at law firm Hamburger Evron & Co., and Adv. Gilad Goni and Ori Shasho of his firm.