Blue Square to build 2 Tel Aviv towers

Blue Square towers Photo: Moore Yasky Sivan
Blue Square towers Photo: Moore Yasky Sivan

The company and its partners bought the Motorola site in Tel Aviv for NIS 470 million.

Blue Square Real Estate Ltd. (TASE: BLSR), controlled by Moti Ben-Moshe, has acquired 70% of the 6.5-dunam (1.625-acre) Motorola site at 5 Totzeret Ha'aretz Street in Tel Aviv. The other 30% of the land is owned by Sufrin Group, Weiss group, GF Real Estate, and Bulthaup Investments, which acquired their share from private owners last March.

Blue Square Real Estate bought its share for NIS 470 million. Under the agreements, the holdings of each of the companies is likely to change.

The site, located between California House and Tel Aviv Towers, has an approved urban building plan for the construction of two towers: one with 40 storeys and the other with 37. The northern tower will be a residential high-rise with 350 apartments to be constructed in the framework of a buyers' group, while the southern tower will have 30,000 square meters of office space above a commercial floor and 40 apartments on the upper floors. The office tower will remain an income-producing property fully owned by Blue Square Real Estate.

According to the developers, 100 2-5-room apartments have already been marketed in the framework of the buyers' group for construction of the residential high-rise. The project, to be called Migdalei Hayetzira and which will include underground parking lots, was designed by the Moore Yasky Sivan (MYS) Architects. Marketing of the office space in the project is likely to encounter competition, since Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1) and Amot Investments Ltd. (TASE:AMOT) are building the ToHa project with 30 floors and 55,000 square meters of offices on the same street.

Blue Square Real Estate will be responsible for managing the design, carrying out the project, and marketing the offices, while the other partners will market the apartments. Blue Square Real Estate's report to the Tel Aviv Stock Exchange (TASE) indicates that the company will grant loans to Sufrin, Weiss, GF Real Estate, and Bulthaup for their share of the equity that must be provided.

The partners will pay the interest and principle on the loans from their share of advances on the profits, and no later than the date on which Form 4 is obtained for the project. Investment in the project, including the land, will total NIS 1.2 billion.

Advocates Levy Amitay and Vered Gitterman from the Goldman Seligman law firm, Advocate Shay Adulam from the Fischer Behar Chen Well Orion & Co. law firm, and Advocates Eran Plaschkes, Meir Porges, and David Amid from the S. Biran & Co. law firm represented the parties in the deal.

Published by Globes [online], Israel Business News - www.globes-online.com - on August 15, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Blue Square towers Photo: Moore Yasky Sivan
Blue Square towers Photo: Moore Yasky Sivan
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