Rothstein Real Estate Advances Jerusalem Urban Renewal Project with 237 New Units
Rothstein Real Estate has secured official approval for its Pinui-Binui urban renewal project on Berl Locker Street in Jerusalem, planning 237 new apartments with projected revenues of 438 million NIS.
Rothstein Real Estate is advancing its urban renewal operations in Jerusalem. The company reported to the Tel Aviv Stock Exchange and the Israel Securities Authority that the detailed urban building plan (TABA) for a major evacuation-and-reconstruction (Pinui-Binui) project at 25 and 26 Berl Locker Street in Jerusalem has been officially approved and published for validation. This development marks the fulfillment of one of the primary suspensive conditions in the project's agreement.
Project Scope and Housing Units
The urban renewal plan involves the demolition of two existing buildings containing 64 apartments. In their place, a new residential and commercial complex will be constructed, featuring 237 new housing units. Out of these, approximately 173 apartments will be designated for sale on the free market, while the remaining units will be allocated as replacement apartments for the existing property owners. The project will also include about 200 square meters of small-scale commercial space.
The venture is being promoted by a subsidiary of Rothstein in a 50-50 partnership with an unrelated third party. To date, the partnership has secured signed agreements from over 77% of the rights holders in the existing 64 housing units.
Financial Projections
The total projected revenue for the project is estimated at approximately 348 million NIS, with Rothstein's share amounting to about 219 million NIS. Total estimated costs are projected at 368 million NIS, with Rothstein's share at approximately 184 million NIS. The anticipated gross profit is estimated at 70 million NIS, representing an expected gross profit margin of approximately 16%.
Rothstein emphasized that the actual launch of the project remains subject to the fulfillment of additional standard suspensive conditions. These include obtaining a building permit, securing a closed bank financing agreement, fully evacuating the existing tenants, and taking physical possession of the land.
Market Outlook
Rothstein's CEO, Avishai Ben Haim, recently commented on the state of housing prices following interest rate adjustments:
"The interest rate reduction lowers financing costs for both developers and buyers, which is definitely good news. Over the past month, we have felt an awakening in our sales offices, and the rate cut certainly serves as a shot of encouragement for the residential market."
