Valuation of Real Estate Rights Block 6453, Sections of ... · Hod Hasharon /19,123,125 / 6453...
Transcript of Valuation of Real Estate Rights Block 6453, Sections of ... · Hod Hasharon /19,123,125 / 6453...
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~1 ~
חבר לשכת שמאי מקרקעין בישראל
Valuation of Real Estate Rights
Block 6453, Sections of Parcels 19, 123, 125
in Western Hod Hasharon
Submitted to Hamizrahi Tefahot Bank
Commissioned by the Hasharon Development Economic Company Ltd.
January 2010
Parcel 123
Parcel 19
Parcel 125
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~2 ~
חבר לשכת שמאי מקרקעין בישראל
ד "בס
Att: Hamizrahi-Tefahot Bank
January 27, 2010
our ref: PR1349/2010
Dear Sir or Madam,
Re: Appraisal of rights in real estate
Block 6453, Sections of Parcels 19, 123, 125 in Hod Hasharon
1. Purpose of the Appraisal
The Sharon Development Economic Company Ltd has commissioned me to appraise the market value
of the rights in the above referenced property. The following valuation assumes unrestricted market
conditions in a transaction between a willing buyer and a willing seller. Further it assumes that, subject
to a signed Cooperative Land-use Agreement and to the buyers' rights therein, professional
management is provided in the re-zoning process.
For this purpose:
I visited the offices of the local Planning and Zoning Committee, where I studied the relevant
City Zoning Plan, which includes the Masterplan for the city of Hod Hasharon.
On December 23, 2009, I visited the site of the property and its surroundings.
I studied the land registry – an internet print-out which I had issued for the property.
I conducted a study of property prices in the vicinity and performed the necessary calculations
and adjustments.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~3 ~
חבר לשכת שמאי מקרקעין בישראל
2. Subject of the Appraisal
One dunam and 200 sqm stemming thereof, which is part of the parcels referenced above, located
west of the Hapoalim neighborhood (hereinafter, “the Property”) is the subject of this appraisal.
3. Statutory Rights
3.1 Registry Extracts
The following emerges from copies of the registry, extracted online on January 24,
2010 (Information from the Ledger of Rights administered by the Petah Tikva Bureau
of Land Registry), which I had issued:
3.1.1 Registry extract of Parcel 19
Block 6453 Parcel 19
Registered area of the parcel – 35,582 sqm
Privately owned, registered in the names of the following owners:
Name Share in
the
property Ester Zvia Shitreet 3/16
Shmuel Shitreet 3/16
Yaakov Shitreet 1/16
Zvia Shitreet 1/16
Hagit Shitreet 1/16
Zvia Freidman 1/12
Yaakov Yariv 1/12
Bosmat Shlush 7/96
Sivan Yesha 7/96
Esther Zvia Wertzel Shitreet 1/16
Shmuel (Shitreet) Yariv 1/16
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~4 ~
חבר לשכת שמאי מקרקעין בישראל
3.1.2 Registry extract of Parcel 123
Block 6453 Parcel 123
Registered area of the parcel – 65,096 sqm
Privately owned, registered in the names of the same owners and in the
same shares as Parcel 19. (Shitreet = Straight)
Pursuant to the Roads Ordinance, a caveat is registered to the State of
Israel, Regulation Collection 6578 dated April 16, 2007, pp. 709-711.
3.1.3 Registry extract of Parcel 125
Block 6453 Parcel 125
Registered area of the parcel – 67,383 sqm
Privately owned, registered in the names of the same owners the same
shares as in parcel 19. (Shitreet = Straight)
3.2 Purchase Agreement
According to information I received, the developer plans to purchase one half of the
rights in the above parcels. I was not shown a purchase agreement or draft agreement.
3.3 Cooperative Land-use Agreement
The following points are subject to a proposed Cooperative Land-use Agreement:
The rights and duties of the parties, appointment of service providers and the
Representative;
The Representative is granted broad authority, including the authority to replace
service providers. All actions designed to effect re-zoning and future usage rights is
to be performed by the Sharon Development Economic Company Ltd;
Payment terms to service providers and the Representative;
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~5 ~
חבר לשכת שמאי מקרקעין בישראל
The rights of the parties to the agreement stem from their rights in the Property, and
will be determined according to the size and type of units allocated to the Property
in the Re-zoning schedules;
The parties intend to cooperate, through their representative as named in the
agreement, to rezone the land from agricultural use to land zoned for construction;
Principles and procedures for the auctioning of the units ;
Principles for the transfer of rights;
Principles for dispute resolution.
4. Description of the environs of the Property
4.1 The Property is located in the western section of Hod Hasharon, bordering Hapoalim
neighborhood to the west and extending to Highway 4. Parcel 123 is located to the
west of Highway 4.
4.2 The Property is adjacent to existing residential neighborhoods. Bordering to the east is
Hapoalim neighborhood, consisting of older private homes, many of which have been
recently renovated. To the south, construction is more recent, comprising of private
homes, garden and rooftop apartments in the relatively new Haprahim neighborhood.
The neighborhood is bound on the south by Habanim Street. Sharet Street, to the north
of the Property, links the neighborhood to Ramot Hashavim and provides access to the
area west of Highway 4, Givat Chen, and Ra’anana.
4.3 The streets adjacent to the Property are: Borochov and Hartzfeld to the east, Hanarkiss,
Havered and Hatzvi to the south.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~6 ~
חבר לשכת שמאי מקרקעין בישראל
5. Description of the Property
5.1 The Property is made up of Parcels 125, 19, and 123 in Block 6453 in Hod Hasharon.
5.2 The following table presents the registered areas of the parcels:
Parcel Area (sqm)
19 39,582
125 67,383
123 65,096
Area of Parcel 123 allocated to
roads 1,152
5.3 Parcel 19 is located immediately to the west of a built-up area, Hapoalim
neighborhood, characterized by high-end private homes, and north of Haprahim
Hapoalim
neighborhood
The
Property
Haprahim
neighborhood
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~7 ~
חבר לשכת שמאי מקרקעין בישראל
neighborhood, characterized by new private homes, garden apartments, and rooftop
apartments. Borochov Street constitutes the eastern boundary of the parcel.
5.4 The parcel is rectangular in shape, the land is level and covered with weeds.
5.5 Parcel 125 is located immediately west of Parcel 19, and is bordered to the south by
Haprahim neighborhood and Highway 4 to the west.
5.6 The parcel is triangular in shape, and the hypotenuse constitutes the boundary with
Highway 4.
5.7 The land is hilly and covered with weeds.
5.8 Parcel 123 is located to the west of highway 4, in the jurisdiction of Hod Hasharon. It
borders a residential area belonging to Ramot Hashavim (new private homes) to the
west, Highway 4 to the east, and Sharet Street to the north.
5.9 The parcel is triangular in shape and the hypotenuse constitutes the boundary with
Highway 4.
5.10 The land is level, with a slight slope toward Highway 4. The land is mainly cultivated.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~8 ~
חבר לשכת שמאי מקרקעין בישראל
5.11 Photos of the Property and surroundings, 23 December 2009
125וחלקה 19לחלקה
Parcels 19 and 125
Parcel 19
Borochov Street cr. Hartzfeld Street,
Hapoalim neighborhood View from Parcel 19 to Haprahim
neighborhood
View from the south (Haprahim
neighborhood) to Parcels 19 and 125
Parcel 123 – view from Sharet Street
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~9 ~
חבר לשכת שמאי מקרקעין בישראל
6. Planning Status
Following is the planning status of the Property as I found it to be and as I was informed by the
Hod Hasharon Zoning Committee office.
6.1 National Outline Plan No.35
Pursuant to the plan, the Property is defined as an urban zone.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~10 ~
חבר לשכת שמאי מקרקעין בישראל
6.2 National Outline Plan #3 – Roads – Amendment No.1
Pursuant to the provisions of the Plan, a section of Highway 4 is defined as a highway.
The setback from the highway to the buildings is 150 meters.
The Local Outline Plan may establish a different distance, taking into consideration
local conditions and the conditions required to prevent environmental hazards, and
subject to the approval of the National Planning and Zoning Council or a committee
appointed for this purpose. An inquiry with the Committee revealed that an easement
of 75 meters may be permitted.
6.3 Regional Outline Plan #21/3
Parcels 19 and 125 – urban development zone
Parcel 123 – agricultural / undeveloped rural landscape zone
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~11 ~
חבר לשכת שמאי מקרקעין בישראל
6.4 Hod Hasharon Master Plan
Pursuant to the Hod Hasharon Master Plan, the Property is defined in an area
designated for development and roads.
6.5 Local Outline Plan
Mandatory Plan R6 dated March 26, 1942
Pursuant to the provisions of the plan, the Property is defined as an area designated for
development.
Minimum plot size – 1,000 sqm
Total building area – 150 sqm
Auxiliary buildings –25 sqm.
6.6 Additional planning information
As I was informed by the Local Zoning Committee:
6.1.1 Parcels 19 and 125 in the area designated for development are adjacent to the
existing Hapoalim neighborhood and therefore it is plausible that these parcels
will be zoned for the construction of private homes at a lower density
compared to areas that are farther from the neighborhood, where it is plausible
that rooftop and garden apartments will be approved at a density of up to 5
units per dunam, gross.
6.1.2 Regarding parcel 123 located to the west of Highway 4, I was informed that the
parcel is part of an overall zoning plan for the area, MS/1–Taas Hasharon, and
cannot be planned separately at present.
6.1.3 The three parcels which constitute the Property are currently zoned as declared
agricultural land.
6.1.4 I was informed that the buyers/developer plan to initiative a city re-zoning plan
to promote development on the Property.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~12 ~
חבר לשכת שמאי מקרקעין בישראל
7. Comparison data
The following Data is taken from real estate database, investigative features published in the media,
and asking prices.
7.1 The price of land for garden and rooftop apartments in the Greenberg complex is
approximately NIS 1 million per unit.
7.2 In the Efron sub-division in west Hod Hasharon, a 310-sqm lot was sold for NIS
1,680,000.
7.3 The Marker published the following information on December 18, 2009: Lots in
western Hod Hasharon have risen in price by 35%. A lot in Ramat Hadar in Hod
Hasharon currently costs NIS 2.76 million.
7.4 A private 300-sqm home in Hadar neighborhood, on a 300-sqm lot was sold for NIS 4.5
million.
7.5 A 200-sqm rooftop apartment located at 12 Ben Gurion Street was sold for NIS 2.99
million.
7.6 A 270-sqm lot in Hapoalim neighborhood is offered for NIS 1.5 million.
7.7 A 260-sqm cottage on a 250-sqm lot located on Halotem Street in Haprahim
neighborhood is offered for NIS 3 million.
8. Factors and considerations
In preparing the evaluation of the Property, the following factors and considerations were taken
into consideration:
8.8 The location of the Property in west Hod Hasharon, adjacent to residential
neighborhoods Haprahim and Hapoalim, up to the boundary with Highway 4, and
beyond Highway 4.
8.9 The fact that Parcels 19 and 125 border on built-up areas that encircle the parcels on the
east, south and partially the north.
8.10 The statutory rights – unspecified private ownership subject to a cooperative land-use
agreement that will be entered into in the future.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~13 ~
חבר לשכת שמאי מקרקעין בישראל
8.11 The planning status applicable to the Property, defined as a zone for development and
roads. It was assumed that the three parcels which comprise the Property will be
included in a single plan applicable to the entire area.
8.12 It should be noted that the density per dunam in many plans in Hod Hasharon is 7-9
units (e.g., HR/1200, HR/1201, HR/1302 in planning, HR/1202 in planning): It is
reasonable that the density in the Property will be lower (3-5 units per dunam, gross)
due to its location. The working assumption is that construction will be permitted on
parcels 19 and 125 only and parcel 123 will be appropriated in entirety for public use.
8.13 The value of the rights refers to 1 dunam and to the value of 200 sqm of land of
unspecified ownership, which does not necessarily reflect land for future units, but is
accompanied by a cooperative land-use agreement (the principles of which are noted
above) and involving an engagement with a specific developer/seller.
8.14 The change in value of the land under different density scenarios does not affect the
average, since the value of land for private homes is higher than the value of land for
garden/rooftop apartments.
8.15 The estimation of the value of the Property entailed adjustments required to take into
account the delay until a detailed plan is approved (7-10 years), the estimated
development and construction costs, and expected Land Appreciation Tax.
8.16 This appraisal refers exclusively to an area of 1 dunam and 200 sqm, subject to the type
of engagement involving the Property, and should not be used to infer the value of a
larger area.
8.17 Transactions and the prices of apartments, lots, and houses and similar plots in the area,
after adjustments and calculations, and the state of the real-estate market and current
level of demand.
8.18 The current state of the real-estate market in general, and specifically the real-estate
market for plots and apartments in the area.
8.19 This appraisal is correct on the date of its issue, and includes VAT.
EYAL TEDDY HAREL - ECONOMIST & REAL ESTATE APPRAISER
שמאי מקרקעין , כלכלן -איל טדי הראל
37 Shlomo Hamelech st. Kiryat Ono, 55421 Tel: 972-3-6093320 Fax: 972-3-6093324
www.ethltd.com [email protected] Hod Hasharon/ 19,123,125/ 6453/ 1349פר
~14 ~
חבר לשכת שמאי מקרקעין בישראל
8.20 A deduction of 15% applies to a rapid sale (“fire sale”).
9. The Appraisal
Taking into account Section 8 above, and subject to all the above, I estimate the value of the
ownership rights in the above-referenced Property, comprising 1 dunam of parcels 19, 125, and
123, in Block 6453, within the following range:
- One Dunam: NIS 1,200,000
- 200 sqm: NIS 250,000
This appraisal was prepared under the assumption that the rights in the above Property are free
and clear of any debt, lien, and/or third party right of any kind, and free and clear of any
possessor. I hereby affirm that I have no interest or part in the above-referenced property and
my evaluation is issued to the best of my knowledge, understanding, and professional
experience.
And in witness thereof I set my hand below on this day, January 27, 2010.
Eyal Teddy Harel
Real Estate Appraiser and Economist