February 9, 2019

A One Billion Shekel Project

The Marker – 09/02/19

A One Billion Shekel Project: The Giant Transaction of Electraand Israel Canada

Electra Consumer Products willsell to Israel Canada half of its air-conditioning plant in Rishon Lezion at avalue of NIS 265 million. Two years ago, Electra Consumer Products acquired landon which office and commercial towers can be built, from the Rishon Lezionmunicipality, at a value of only NIS 185 million

Eran Azran

Electra Consumer Products, which ispart of the Salkind family's Elco Group, will sell half of its air- conditioningplant in Rishon Lezion to Israel Canada at a value of NIS 265 million. Electra ConsumerProducts acquired the land two years ago from the Rishon Lezion municipality ata value of only NIS 185 million. The parties are holding advanced negotiations towardsthe final signing of the agreement. A project estimated at NIS 1 billion isexpected to be built on the site.

[insert:  Visualization of the area acquired by ElectraConsumer Products in the Ayalon Complex]

 

Electra Consumer Products has beenleasing the area that is sold, 51 dunams located on Sapir Street in the Ayalon Complex,from the Rishon Lezion municipality since 1970. In May 2017 Electra ConsumerProducts purchased the area from the municipality without a tender, due to thelength of the lease. Electra is expected to relocate some of its existingair-conditioning production operations to the city of Ashkelon. The urban buildingplan allows the construction of office and commercial towers on the complex.  The Ayalon Complex is located next to theAyalon Highway on the west, and to Moshe Dayan Street on the north, and next tothe Moshe Dayan train station, through which three tramway lines are expectedto pass.  To total area of the complex is513 dunams, and currently the new hospital of Assuta is being built there.

The plan is expanding constructionrights

About three years ago, theDistrict Planning and Building Commission approved a new urban building planfor the complex, initiated by the Rishon Lezion municipality, which included achange of land designation from industry and labor to employment and commerce. Theplan sets usages for hi-tech industry, offices, light industry, labor andcommerce, nearly doubling the construction rights - an additional 360,000 squaremeters to the existing 400,000 square meters.

The complex presently includes office,labor and industrial buildings, as well as Electra Consumer Products’ airconditioning plant, covering a total area of ​​30,000 square meters. The planexpands the construction rights, enabling to build up to 180,000 square meterson the land, including 160,000 square meters for employment, 20,000 squaremeters for commerce and an additional 80,000 square meters of undergroundspace.

According to the appendix to the plan,the purchased area will allow the construction of five office towers of up to20 floors with a commercial façade, as well as additional eight-floor buildings,and underground construction of up to five levels below ground.

Electra Consumer Products andIsrael Canada did not comment.

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