The White City construction company has contracted with the United Sarona buyers group formed by the Minhal Megurim Israel company to buy from the latter for NIS 45 million the rights to three buildings on Tel Aviv's Sarona site marked for preservation and zoned for commerce. The buildings, built by German Templers in Israel, are located on a plot on the Israel Broadcasting Authority (IBA) site won by the buyers group in an Israel Land Authority (ILA) tender in March.
The buildings have two or three storeys, plus basements, with a total area of 1,000 sq.m. Because the buildings are marked for preservation, the company will have to comply with the instructions in the documentation file and the municipal preservation regulations. According to the design, after being renovated, the Templer buildings will house 40 brand name stores and restaurants. Architect Gidi Bar Orian has been hired to design the Templer buildings.
Minhal Megurim Israel co-CEO Moti Peled said today, "In comparison with previous deals involving buildings in the Sarona area marked for preservation, the prices are impressive for the area."
Commenting on the deal, White City cofounder and CEO Itzik Ben Shoam said, "We're glad to take part in the new Tel Aviv city center, and to apply our experience in building preservation to the Templers' buildings in the Sarona area. The company is developing urban renewal projects in Tel Aviv and providing advice for renewing and preserving the city's appearance."
The buyers group won the tender over companies like Gindi Holdings, which came second, and a partnership between Israel-Canada, Acro Real Estate, and the Hajaj group. The group's winning bid was NIS 1.06 billion (NIS 1.24 billion including VAT), a record for a plot sold by the state. The IBA site is zoned for 324 housing units, 8,010 sq.m. of main office space, and 2,300 sq.m. of main commercial space. Development fees for the plot, which the winners will also have to pay, total NIS 24.3 million.
The deal can only go through if the buyers group meets all the ILA requirements, buys the land, and pays the entire proceeds for it.
Published by Globes [online], Israel business news - www.globes-online.com - on May 10, 2016
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