Sources inform ''Globes'' that Kardan Israel Ltd. (TASE:KRIS) is in advanced negotiations to buy the Achtman lot at Menachem Begin Rd. 152, Tel Aviv, for $34 million. Under the pending contract, the landowner, Alexander Achtman, must fulfill a number of conditions to close the deal.
An 18,600-sq.m. four-storey underground structure currently occupies the site, above which an aboveground floor and mezzanine may be built. The lot also has building rights for 22,000 sq.m. of office space on 11 floors and 7,000 sq.m. in residential space, for a total space of 46,000 sq.m.
Industry sources say that Kardan Israel effort to buy the property is rather odd, because it owns the adjacent lot, which has 16,000 of unused building rights. The sources believe that the company wants to prevent future competition and it also may see added value in the Achtman lot’s residential building rights. It may seek to consolidate the two lots to increase the total building rights.
Kardan Israel said in response to the report that, as a public company, it was obliged to notify the public when a deal was concluded.
Published by Globes [online], Israel business news - www.globes.co.il - on July 23, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006