Sources inform ''Globes'' that Shaya Boymelgreen is in advanced negotiations to buy Assuta Medical Centers Ltd. old compound on Jabotinsky St., Tel Aviv, owned by Gad Zeevi. The deal will reportedly total $46 million. Boymelgreen is the partner of Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) controlling shareholder Lev Leviev in real estate developments in the US.
Under the plan recently deposited with the Tel Aviv Regional Planning and Building Council, the Assuta compound is zoned for 180 apartments in a 24,000-sq.m. 35-storey high-rise, plus another 40 apartments in the Assuta Hospital’s existing buildings, and 2,400 sq.m. of commercial space.
The development is being promoted by Mirage Israel Development Ltd., owned by Zeevi, and Dag Hacesef Assets & Buildings (1992) Ltd., Dan Goldstein and Jack (Yaki) Dunietz. Zeevi recently received three offers, averaging $45 million, for the compound, subject to approval of the new urban building plan (UBP) for the site.
The Tel Aviv Local Planning and Building Council has approved the UBP, but many objections are expected to be filed with the Tel Aviv Regional Planning and Building Council by local residents. The residents fear that a shortage of parking in the area caused by the project will lower property values.
Published by Globes [online], Israel business news - www.globes.co.il - on February 5, 2006