Join a syndicate to invest in Urban Renewal – Katamonim – Jerusalem

Posted in Commercial Properties

A splendid opportunity to become part of high-yield medium to low risk construction project in the upper-coming neighborhood of Katamonim, South Jerusalem. This neighborhood has recently been rezoned and is currently undergoing urban renewal.

With prices on the rise and a constant flow of young families, this project is one of those which pioneer the way to turn the area into a vibrant  young Jerusalem community.

The Neighborhood at a glance

  • Built in 1950’s to house  wave of immigration from Northern Africa
  • Small buildings – 4-8 units
  • Lies between Katamon  (south) and Talpiot – Bakka (North-East)
  • 16,000 inhabitants (approx)

The Opportunity

  • 2011: master plan increases rights from 50% to 280%
  • Exemption of improvement tax for Tama 38 and Pinui Binui projects
  • Younger vibrant urban and communal renewal
  • Small hand able plots

Timeline

October 2015 Signing up of current owners to agree to vacate property.

Stage completed.

 

November 2016 Receive building permits. Approval of plans to build 2385 sqm instead of existing 390 Sqm.

Investors equity should now be prepared for construction costs

December 2016 Owner vacate building. Rental apartments located and paid for by investors
December 2016 Start construction
2017 – 2018 Construction and pre-sale
January 2019 Certificate of occupancy and final sales.

Profits divided and allocated to investors

Financials at a glance

Costs      
Purchase Per SQM Of costs Total
Purchase of Property ₪ 0
Purcase Tax 5% ₪ 0
Legal Costs 1.00% ₪ 350,000
Other costs 2% ₪ 150,000
Guarantees ₪ 150,000
Total Purchase ₪ 650,000
Tama 38
Architect ₪ 600,000
Fees ₪ 150,000
Building Costs
New Build 6500 ₪ 15,106,000
Service areas 3000 ₪ 1,000,000
Parking and add-ons 3,000,000 ₪
Tennants ₪ 1,000,000
Rent ₪ 480,000
Interest and finance 3.50% ₪ 480,000
Total Building 21,066,000 ₪
Total Costs 22,466,000 ₪
Total Equity ₪ 11,413,000
Income      
Meters Price Total
Sales 1,562 26,500 ₪ 41,393,000
Rent ₪ 0
₪ 41,393,000
Cost of sales:
Agents fees: ₪ 827,860
Legal fees: ₪ 300,000
Total: ₪ 1,127,860
Net Sales ₪ 40,265,140
Prefered bankers
  • Mercantile Discount
  • Mizrachi Tefachot
  • Otzar Hachayal
Note