A joint real estate company for Gev Yam and Rav Bariach, will establish an industrial complex in Ashkelon

The companies announced that they had signed an agreement in principle, according to which Rav Briach has allocated 70% of the share capital in Rav Briach Real Estate to Gav-Yam. , And will operate for the planning, licensing and construction of a factory that will be leased to Rav Briach for 25 years

Walla!

Of money

10/05/2022

Tuesday, 10 May 2022, 10:03 Updated: 10:19

• Share on Facebook

• Share on WhatsApp

• Share on Twitter

• Share on Email

• Share on general

• Comments

  Comments

Rav-Briach and Gev-Yam are launching another collaboration: The companies are entering into an agreement in principle for the establishment of Phase II of 'Kiryat Rav-Briach - Gev-Yam' in Ashkelon, with an estimated amount of NIS 400 million.

The parties will establish a joint company to carry out Phase B of the new Rav Briach plant, with a total area of ​​38 dunams, of which 55,000 square meters will be built, which will include, among other things, 4 floors of advanced and innovative industry and 2,000 square meters that will be used as headquarters. Company management.

Upon completion of Phase B, the entire project will include - Kiryat Rav Barih - Gev-Yam (Phase A + B) factories with a total area of ​​about 96,000 square meters, on top of a land division with a total area of ​​about 93 dunams in the industrial area Ashkelon, with a total investment of approximately NIS 620 million (part of

Gev

-Yam approximately NIS 470 million).

The lease (about 25 years).

Good to know (promoted)

The button that can save your life in the event of a medical emergency

Served on behalf of Shahal

Avi Jakubowicz, CEO of Gev-Yam (Photo: Eldad Refaeli)

The plant, which has already been established, will open in early 2023

According to the joint announcement issued today by the two companies, upon completion of the construction, Kiryat Rav-Briach - Gev-Yam will become one of the largest and most advanced production complexes in the world in its field of occupation.

The new multi-bolt plants will be equipped with advanced production technologies, which will enable the automation of production moves and will significantly increase productivity, profitability along with quality and production capacity.

It was also reported that the new plant will meet the growing demand in the field of construction industry products in Israel, along with increasing exports mainly of steel doors to the Americas, Africa and Australia mainly.

Today, the companies reported that they have signed an agreement in principle, according to which Rav Barich has allocated 70% of the share capital in Rav Briach Real Estate Ltd. to Gav-Yam.

The joint company will work with Remi to allocate land in an area of ​​about 38 dunams, near the Phase A lands, for the purpose of establishing another plant for multi-bolt, and will work for the planning, licensing and construction of a plant in a total area of ​​about 55,000 square meters. Upon completion, Rav-Briach, for a period of approximately 25 years, in exchange for rent that reflects a return of approximately 6% on the investment.

Financing for the establishment of Phase B of the plant will be done until it is populated by Gev Yam, and after the occupancy, each of the companies will bear the costs of financing the construction according to its share in the joint company.

As will be recalled, during the first quarter of 2021, the parties entered into a joint transaction for the establishment of Kiryat Rav-Barich - Gev-Yam (Phase A), with a total area of ​​approximately 41,000 square meters, on top of a multi-bolt land division in an area of ​​approximately 55 Phase A of the Kiryat Rav Briach - Gev Yam area includes a new plant with an area of ​​41,000 square meters built on 55 dunams, which will open in early 2023 and will house the group's steel doors and gates.

Rab-Briach will lease the property for a period of about 25 years.

Upon completion of the establishment of the plant, the share of Gev-Yam in the property will be - 70% and the share of Rav-Briach - 30%.

The parties are expected to sign a detailed agreement within 60 days from the date of completion of the land allotment intended for the construction of Phase B of the plant.

Idan Zo-Eretz, CEO of the Rav-Briach Group (Photo: Eyal Toag)

"Another stable growth engine"

Avi Jakubowicz, CEO of Gev-Yam

, said today: "Gev-Yam has set itself the goal of expanding its activities in the field of logistics and industry centers, and continues to expand its activities in this field, by utilizing existing historical land reserves for logistics and flooding existing industrial and logistics areas. .

The company is also working to locate and purchase land reserves for existing logistics and

marlogs, in order to increase the volume of its assets in the field, and enable it to compete properly with existing demand.

The expansion of the contract with Rav Briach, with the agreement of principles signed today, is another significant step of the company in achieving the said goal.

Gev-Yam has properties totaling more than one million square meters, of which the scope of properties intended for logistics and industry is about 250,000 square meters, with Gav-Yam Modiin Park, Gev-Yam Maman Park in Lod and Gev-Yam Park among the prominent complexes. Caesarea and the industrial areas in Holon, Yavne, Beer Yaakov, Haifa Bay, Tirat Carmel, Rehovot and others.

Kiryat Rav-Briach - Gev-Yam is expected to yield Gev-Yam, upon completion and population by Rav-Briach, annual revenues estimated at NIS 28 million. "

:" Rav Briach ended 2021 with record revenues that crossed the half-billion shekel threshold for the first time in the company's history, annual growth of about 38%, of which organic growth of 17%.

The launch of Phase B of the new plant is an outgrowth of the realization of the group's long-term growth strategy and will allow us to continue to increase productivity and profitability, create operational flexibility, increase production capacity and increase export activity.

In addition, the additional plant areas allow us to examine and absorb new areas to which the group intends to expand in the coming years.

Rav Briach invests approximately 50% of its issuance from August 2021 in the new plant (Phase A) in advanced production lines managed through information systems that are at the forefront of technology.

The company estimates that its entry into the new plant at the beginning of 2023 (Phase A) will lead to a significant streamlining of production capacity and an increase in the company's profitability. "

• Of money

• news

Tags

• Sea back

• Lock

• Ashkelon

• Factory

• Real Estate