Tnuva Food Industries Ltd. has signed the deal for the sale of its compound in Tel Aviv for NIS 530 million to a consortium of Electra Ltd. (TASE: ELTR), Pangaea Real Estate Ltd. (TASE:PNGD), and Eurocom Global Real Estate Ltd. (TASE: EGRE). Electra will own 25% of the lot and the other companies will each own 37.5%.
The Tnuva lot, at the corner of Shaul Hamelech Street and Menachem Begin Road in Tel Aviv, has a net area of 13 dunam (3.25 acres) and a current building permit for 124,000 square meters plus 2,500 parking spaces. The lot overlooks the Ayalon Highway. The buyers plan to build three 65-storey mixed-use skyscrapers on the lot at a cost of NIS 2 billion. The companies are considering applying to increase the height of the buildings to 90 stories each.
The companies plan to build a residential, office, and commercial complex similar to the Azrieli towers up the street. The Tel Aviv light railway is due run directly beneath the lot.
Electra's share price rose 0.9% in morning trading to NIS 395.80, giving a market cap of NIS 1.4 billion, Pangaea's share price rose 9.2% to NIS 0.85, giving a market cap of NIS 110 million, and EGRE's share price was unchanged at NIS 4.72, giving a market cap of NIS 34 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 15, 2011
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