Bank Leumi (TASE: LUMI) will provide Berggruen Holdings NIS 550 million in financing and loan guarantees for the company's planned luxury high-rise at the corner of Rothschild Blvd. and Allenby St. in Tel Aviv. New York architect Richard Meier of the Richard Meier & Partners, Architects LLP will design the building.
Berggruen bought the lot from British-Israel Investments Ltd. (TASE: BRTS), controlled by Leo Noe, in October 2006 for $32 million. The company will invest tens of millions of dollars in construction, and expects $200 million in proceeds. Construction is due to begin in 2008 and finish in 2011. .
Beggruen Israel CFO Motti Bilbul said, "The choice of Bank Leumi to finance the project was taken after an in-depth examination of the bids made in our tender among leading Israeli financial institutions. We're sure that this collaboration will be the first of many."
Berggruen Holdings has also bought seven properties on Nahalat Binyamin St. in Tel Aviv for $40 million. The properties, which include Beit Tamar and Beit Ha'Amundim, are slated for preservation. Last month, the company also bought two more Tel Aviv properties slated for preservation under strict restrictions for $8.5 million. One is at the corner of Ahad Ha'am St. and Herzl St., and the other is at 5 Nahalat Binyamin St.
Real estate business along Rothschild Blvd. and neighboring streets has been booming in the past year. The Fitman School building at the corner of Ahad Ha'am St. and Balfour St. was bought by developer Jacob Engel and private investors for $10.5 million. They will build 12 luxury apartments in the six-storey building. An Israeli and French investor bough the Tziporen House, at the corner of Ahad Ha’am St. and Nahmani St. for $7.8 million, and will redevelop it into luxury apartments. Arcadi Gaydamak bought the Zim lot on Rothschild Blvd. from Mizrahi Tefahot Bank (TASE:MZTF) for $26 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2007
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