The Mozes family is selling the Tel Aviv headquarters of Hebrew daily "Yediot Ahronot" to Azrieli Group Ltd. (TASE: AZRG) for NIS 374 million. Azrieli will also cover the NIS 19 million purchase tax. The company plans to build a NIS 600 million office tower on the lot, adjacent to from the Azrieli Center.
Beit Yediot Ahronot, which will be demolished, occupies an eight-dunam (two-acre) lot, which has building rights for an 85,000-square meter 60-floor office and residential tower. Azrieli Group chairman David Azrieli plans to build a 255-meter elliptical skyscraper on the site. Half the floors will be for offices and half will be residential, with 370 apartments.
With the purchase of the Beit Yediot Ahronot lot, Azrieli is tightening his grip on Menachem Begin Road, along which he has 265,000 square meters in building rights, following purchases of land for NIS 1.1 billion over the past two years. In May 2011, Azrieli Group won the tender for a nine-dunam (2.25-acre) lot in Sarona (South Kirya), across the street from the Azrieli Center, for NIS 522 million. The company plans to build a 121,000-square meter office and residential skyscraper, which will be the fourth Azrieli Tower, on the site.
In October 2012, Azrieli Group bought the Clalit Health Services lot for NIS 240 million. The lot has 75,000 square meters in building rights.
"Expanding the parking garage and building the tower on the Beit Yediot Ahronot lot complete the work we began with the construction of the Azrieli Center in 1995. We will again change the Tel Aviv skyline with a unique engineering shape," said David Azrieli. "The Triangle, Round, and Square towers will be joined by the elliptical tower, which will be built on this site."
Azreli added, "The purchase of land adjacent to the Azrieli Center continues the Azrieli Group's vision to strengthen and expand its business in Israel. Construction of the new tower and expansion of the parking garage as direct additions to the Azrieli Center will combine the business and architectural vision of the Azrieli Group's flagship project, a project which positioned the company at the forefront of real estate enterprise, and greatly contributed to the Israeli economy and the city of Tel Aviv."
Published by Globes [online], Israel business news - www.globes-online.com - on May 22, 2013
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