Israeli and Chinese companies have signed an agreement to develop a number of real estate projects in Israel for an estimated $3.7 billion, Globes reported on Sunday.
Israel Land Development Company announced that it had entered into an agreement with a leading Chinese government company to build and finance 19 real estate sites in Israel, including a nursing home and an office tower in Bnei Brak.
Israel Land Development CEO Ofer Nimrodi said that the Chinese company was a huge government company “on a scale unknown in Israel. The Chinese company has technology and high-quality performance that will enable us to build projects and thousands of housing units at competitive prices.”
The projects include 21,500 apartments in various advanced stages of construction, subject to obtaining the consent of tenants and the local authorities. ILD also said that the parties would consider a joint venture in real estate and residential construction in Israel.
The Chinese company will reportedly cover 70 percent of the financing for each project, while ILD would make up the rest: 15 percent against a guarantee from an international bank and 15 percent according to construction milestones. It was further stated that the financing for the Chinese company would be repaid over a two-year period from the end of the project, or when Form 4 is received.
The Chinese company is scheduled to send a team to Israel in the next two weeks to examine various sites. It is then expected to make bids for two initial projects a large nursing home in Bnei Brak with over 1,000 beds, and a 60-floor office tower in Bnei Brak.