Several new luxury residential high-rises are going up on some of Tel Aviv's most venerated parking lots, exacerbating the city's parking shortage.
The 30-story Meir project at the corner of Rothschild Boulevard and Allenby Street, being built by Berggruen Residential Ltd. (TASE:BRGN.B1), is expected to generate $200 million in proceeds from apartment sales. Gindi Holdings Ltd. is building the G Tel Aviv project on the Hashoftim lot at the corner of Ibn Gvirol Street and Shaul Hamelekh Street. Starting prices in the 31-storey high-rise with 37 apartments start at $2 million. Shari Arison and her husband Ofer Glazer bought a 700-square meter apartment on an upper floor for $13 million.
EMD Real Estate Development and Investment Ltd. plans to build a $100 million 29-storey high-rise on the old Dan bus garage on Arlozorov Street, near the sea. The garage has long been used as a 200-space parking lot, and the Tel Aviv municipality required the company to provide 160 parking space in its new project.
A seven-storey building with 26 apartments is going up on a parking lot on Mapu Street, and a group of developers led by Alony Hetz Property and Investments Ltd. (TASE: ALHE) CEO Natan Hetz won a tender to build a seven-storey building with 31 apartments is going up on the 100-space parking lot previously owned by Clalit Health Services on Remez Street. Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) is building a 40-storey high-rise with 257 apartments and 5,000 square meters of commercial space on a 300-space parking lot on Ibn Gvirol Street across the street from Beit Menorah. A parking lot on Hayarkon Street has also been given over for a luxury high-rise.
Tel Aviv municipality director of transport, traffic and parking Moshe Tiomkin said, "There are private parking lots whose owners are now exploiting the building rights for residences, and the municipality has no say in the matter. There are many examples besides the Hashoftim lot and the Dan lot… The municipality has not promised to build alternatives to these private parking lots, especially not in the city center. In general, the policy of the Ministry of Transport and the municipality is to encourage people to use public transport."
Tiomkin noted that the municipality is trying to establish public parking lots. He notes that the capacity of the Habima parking lot in the city center will triple when it is completed.
Published by Globes [online], Israel business news - www.globes-online.com - on May 25, 2008
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