Donitz sells land to Praszkowski at 240 m – capital market

Real Estate Company

Donitz
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Reports the sale of land to the company

Praszkowski
+ 0.07%

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For about NIS 240 million. This is an area of ​​10 dunams in Ashdod, which Donitz purchased about three and a half years ago for NIS 123.5 million. The company will post a profit of about NIS 100 million from the deal with Praszkowski, and meanwhile the share of the former is rising by about 6%. The buyer is expected to build 4 29-story towers on the land, including 384 units.

The land that Praszkowski will receive is located near Assuta Hospital and Big Fashion Ashdod. “From a statutory point of view, the complex is in the process of being approved by the Master Plan for increasing rights, and this means that construction is expected to begin only in a few years,” Nissim Ahiezra, CEO of Donitz Brothers. “The immediate profit from the transaction will increase the company’s equity on the one hand and reduce its leverage on the other hand and will be used, among other things, to close bank debts, distribute dividends, and allow it to enter into new transactions.”

Even if construction begins, it will have to wait several years, for Praszkowski this is the first entry into Ashdod, hence the expansion of its deployment in areas of demand. “We hope this is the first swallow on the way to more projects in the city,” he said The company’s CEO Sharon Praszkowski. The company recently reported on a combination deal of 156 housing units in Herzliya as well as the purchase of land for 100 housing units in Beer Yaakov.

As for Donitz, although the company has given up the land in question, it is still active in Ashdod, and owns a complex in the Southern District where there are 5 residential towers with a total of 450 apartments and 1,000 square meters of commercial space. One of the towers is already populated, the second is in the population stages and the third is in the marketing stages.