A buyers group managed and led by BSR Europe (TASE: BSR), controlled by Nachshon Kivity, and Israel Canada ITR Ltd. (TASE:ISCN), controlled by Assaf Tuchmeir and Barak Rosen, yesterday exercised the option granted it for the purchase of the last lot in Park Tsameret in Tel Aviv. The partners signed agreements to buy the rights in the five-dunam (1.25-acre) lot at a value of NIS 270 million.
The members of the buyers group intend to erect a 49-storey residential project with 189 apartments. The project's value is estimated at NIS 800 million. This is the first time that the two companies are cooperating in one project, although both BSR and Israel Canada have each built three other high-rises on the site.
The residential high-rise to be constructed by the group, the last to be built in the neighborhood, is located in the southeastern part of the site. As of now, the companies are at the stage of submitting plans to the Tel Aviv municipality. It is believed that construction of the tower is slated for early 2016. The contractor has not yet been selected; the members of the buyers group will select it soon. The companies hurried to exercise their option before the purchase tax rise takes effect, thereby saving themselves taxes with an aggregate total of millions of shekels. "We've worked on this deal for a long time," Kivity said. "This is complicated deal, because ownership of the land is split among 50 different owners. The fact that the purchase tax rose yesterday night made the signing go quicker, and I estimate that it will save the members of the group over NIS 2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2015
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