The buyer group organized by BSR Europe (TASE: BSR), controlled by CEO Nachshon Kivity, has exercised an option to buy land in on the Osem Investments Ltd. (controlled by Nestle SA (SWX:NESN)) site for the construction of two office towers, at a cost of NIS 750 million, and has signed an option to buy additional land for a third tower for NIS 350 million.
The group exercised an option it obtained in 2016 to buy land for two office towers with a total of 80,000 square meters and underground parking spaces. The land purchased is part of a large 39-dunam (9.75-acre) site located at the intersection of Jabotinsky Road and Rabin Street, near Beilinson Medical Center on land that formerly housed an Osem plant.
Owned by the Bruner family, the Wolfson family, and Shuky Sharon, the land is zoned for construction of four 40-storey high-rises containing 160,000 square meters of offices and 20,000 square meters of commercial space. The plan applying to the land became effective in 2015.
Now that the option for two of the four towers has been exercised, the landowners are holding the remaining land zoned for construction of two more office towers and commercial space. BSR has now obtained an option to buy another part of the land zoned for construction of a third tower with 40,000 square meters and underground parking spaces. The average price per square meter is NIS 6,400. The buyers group also signed a performance agreement with Omer Engineering, which will begin digging and buttressing work in two weeks.
The project is adjacent to the location of the light railway route, which is designed to travel on Jabotinsky Road. "When we obtained the option a year ago, many people thought we would not manage to exercise it and buy the land, because it was in Petah Tikva. Things proceeded rapidly, however, and rents in Petah Tikva are constantly rising, and have reached NIS 75 per square meter," BSR chairman Nachshon Kivity said.
70% of the buyers group members are members of the liberal professions who bought the land for their own use, such as accountants, lawyers, appraisers, insurance professionals, advertising companies, and doctors, because of the proximity to Beilinson Medical Center.
"One of the important parameters that led the buyers to join the group is that the project is available for construction. A week ago, we began marketing the third tower, and we have already marketed 50%," Kivity declared.
Published by Globes [online], Israel Business News - www.globes-online.com - on July 24, 2017
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