Land purchased in Herzliya in 1945 turns into $33M real estate windfall
Land purchased in Herzliya in 1945 turns into $33M real estate windfall
Real estate company Israel Canada announced that it has purchased agricultural land in Herzliya from the Urieli family for NIS 120 million. The father of the family purchased it in 1945 for an amount equivalent to approximately 550,000 shekels. Israel Canada estimates that the land will be ready for construction within five years.
The prospect of converting agricultural land for construction has become a significant opportunity for one of the founding families of Herzliya. The real estate company Israel Canada, controlled by Barak Rosen and Assi Tuchmeir, reported to the Tel Aviv Stock Exchange this week that it had purchased all rights to agricultural land in Herzliya for NIS 120 million (approximately $33 million). The company has already paid NIS 40 million and will pay the remaining NIS 80 million when the land is officially transferred to its possession in February.
The land in question spans 21 dunams and falls within the TML3006 plan, commonly known as Herzliya's northern quarter. The plan's boundaries are north of Menachem Begin Boulevard/the Jewish Brigade and Reichman University and west of Highway 20, between the Ma'apilim Bridge and the new 531 interchange. Within the district and outside the plan's boundaries are the neighborhoods of Nahalat Ada and Gan Rashal. As part of the TML3006 plan, 10,000 new apartments are slated for construction.
Israel Canada did not disclose the seller in its report to the stock exchange. However, a review of the tabu (land registry) reveals that the seller is a company called "Mutzar - Agricultural Products Company." This company was established in November 1945 by the Urieli family to manage land in Herzliya and its surroundings. Simcha Urieli, a Russian immigrant from the 1920s, founded the company after working as a water-well driller. He later became a contractor specializing in construction and water wells.
The Urieli family has owned the land purchased by Israel Canada since 1945. While the original purchase price is unknown, registry details indicate that in 1950, a mortgage of 14,000 Israeli pounds was secured against this land and three other plots. This amount, equivalent to 1,400 old shekels or 14 new shekels, translates to approximately NIS 550,000 ($151,000) in today's terms.
According to the Companies Registry, Mutzar - Agricultural Products Company is owned by nine Urieli family members. The largest stake, 23.3%, belongs to Miriam Rochman, who resides in Caesarea. The most prominent Urieli family member is Yehuda Urieli, CEO, chairman, and controlling shareholder of the public construction company Simcha Urieli & Sons. Yehuda Urieli ran unsuccessfully for mayor of Herzliya in 1998 and 2003 but does not hold shares in Mutzar.
Why was Israel Canada willing to pay NIS 120 million for agricultural land? Its location near Reichman University, major roads, the Herzliya Airport (scheduled for closure), and a planned metro station makes it highly desirable. Israel Canada anticipates the land will be approved for construction within 4–5 years. The purchase is expected to attract further interest from developers.
The Airports Authority's announcement in August that Herzliya Airport will close next year has heightened interest in the TML3006 plan. An appraiser estimates that a 100-square-meter apartment in the area will sell for NIS 3.75 million ($1 million).
Israel Canada is not the first company to acquire agricultural land in this area with future construction in mind. In August, Reality Group, a real estate-focused firm, purchased 40 dunams of agricultural land in the Nahalat Ada neighborhood for NIS 205.5 million, equating to NIS 5.1 million per dunam. Three months later, Israel Canada acquired land for NIS 5.7 million per dunam, suggesting expectations of rising land values.
Israel Canada is one of the largest real estate companies on the Tel Aviv Stock Exchange, with a market capitalization of NIS 4.9 billion.
