An option agreement was signed eight months between the BSR group, owned by Nachshon Kivity, and Automotive Equipment Group (AEG), the importer for Suzuki and Chrysler, controlled by Zvi Neta. The option to buy the lot for NIS 90 million has been exercised in recent days, sources inform "Globes," after BSR marketed the office space in the planned building to a buyers group, which will construct the project.
The four-dunam (one-acre) lot, located at 82 Yigal Alon St. in Tel Aviv, currently houses a Suzuki garage. The existing one-storey building has 3,000 sq.m. of built-up space. According to the Urban Building Plan for the site, the buyers group can construct a 17-storey office building with 24,000 sq.m. of built-up space above a commercial floor with 1,800 sq.m. The project is designed to include an underground parking lot with 400 spaces. The investment in the project, including the land, is estimated at NIS 280 million.
AEG, the landowner, is retaining ownership of the commercial floor and the top three floors in the building, and will be part of the buyers group. Sources also inform "Globes" that the group includes well-known names like Madanes Insurance Agency chairman Shuki Madanes and Rad-Bynet Group chairman Yehuda Zisapel, who each acquired rights to one floor in the building. A typical floor in the planned tower will contain 1,200 sq.m. The building is being designed by the MYS Architects firm. The lawyers who represented the landowners in the deal are the Fischer Behar Chen Well Orion & Co. law firm and the Schneider law firm, and the Hermann, Makov, & Co. firm represented the buyers group.
The buyers group intends to construct the project without asking for concessions. According to Kivity, the group's organizer, who confirmed the particulars to "Globes," the company is currently in the advanced design stage, and has already requested a building permit. "We hope we'll be able to get a building permit within three months," Kivity said. "We obtained the option eight months ago, and have managed to market the entire tower. I'm continuing my operations on the Yigal Alon artery, which I realized years ago was Tel Aviv's Fifth Avenue. This project will contribute to the development of the entire area. We're now in the stage of taking bids from contractors. I hope we'll be able to start construction on the site by the end of this year."
Published by Globes [online], Israel business news - www.globes-online.com - on May 6, 2015
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