Court approves Hagag 12 Tel Aviv towers plan

Einstein St Tel Aviv land photo: Hagag Group
Einstein St Tel Aviv land photo: Hagag Group

The Hagag Group will be able to build up to 12 towers in Einstein street in New Ramat Aviv.

The Tel Aviv Magistrates Court yesterday approved Hagag Group Real Estate Development Ltd.'s (TASE: HGG) win in the tender for land located at 35 Einstein Street in Tel Aviv zoned for construction of four towers with 212 housing units and 9,000 sq.m. of commercial space.

The tender, which was issued by a receiver after a partnership dissolution proceeding, completes the Hagag group's takeover of plots on the northwestern part of Einstein Street. Hagag will build a total of 12 towers containing commercial space in the area.

The price for the land, NIS 389 million plus VAT, a total of NIS 455 million, was determined in a pricing procedure. Other participants in the procedure included Gindi Holdings, Reality Investment Fund, Netanel Group Ltd. (TASE:NTGR), and Schultz Group.

The Hagag group organized a buyers group for acquiring 74% of the land, and has now acquired the rest in the pricing procedure, including all the commercial space and five more housing units that have already been marketed.

The site covers 7.3 dunam (1.825 acres). The current urban building plan permits construction of two nine-storey buildings with 82 housing units averaging 120 sq.m. each, in addition to 2,600 sq.m. of main commercial space and 1,900 sq.m. of cellar space next to the commercial part.

Two more towers will be constructed in the framework of construction rights under Plan 5000, which has already been approved. According to the provisions of this plan, up to 212 housing units can be constructed in 25-storey towers, plus 9,000 sq.m. of commercial space.

Hagag acquired the land next to the site, known as Lot 36, in 2010, and has completed the construction of three towers and a double commercial level on it (the land cost NIS 101 million at that time). The housing units are now ready to be handed over to tenants.

The group bought another lot in 2013 at 33b Einstein Street, on the other side of the street, for NIS 120 million in the framework of the dissolution of the partnership owning the land. Two towers and a double commercial level are currently under construction on the site.

In addition to these deals, Hagag is building another project at 33a Einstein Street zoned for construction of three towers above a double commercial level in cooperation with the landowners, who own 70% of the rights in the land.

The Hagag group initiated the dissolution of a partnership for another lot at 36a Einstein Street, corner of Levi Eshkol Street. It owns 50% of the rights there, and owners of 25% more of the rights in the land are joining the project.

Published by Globes [online], Israel business news - - on November 9, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Einstein St Tel Aviv land photo: Hagag Group
Einstein St Tel Aviv land photo: Hagag Group
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