Azorim Investment, Development and Construction Ltd. (TASE: AZRM) and a partner have bought the Elite lot in Ramat Gan from Crescent Heights for $80.2 million, plus VAT. Azorim will invest $50 million. Azorim chairman Shaya Boymelgreen controls the company through Boymelgreen Capital Ltd. (TASE:BMGN).
Crescent Heights, owned by US real estate tycoon Sonny Kahn, bought the Elite lot from Strauss Group Ltd. (TASE:STEL) in March 2006 for $44 million. Following the purchase, Sami (Nissim) Tito, the founder and owner Tito NS Architects Ltd., which represents Crescent Heights in Israel, announced that it would partner with Donald Trump to build a 70-storey luxury high-rise on the site.
Azorim estimates the cost of development at $240 million, of which it will invest $170 million and make $250 million in proceeds.
Tito said that Trump's backing of the project meant that the project could be called Trump Plaza Center. The Urban Building Plan for the site permits construction of a 72,000-square meter skyscraper, half of which is zoned for residences and the rest for offices and commercial space. Crescent Heights said that it was seeking to rezone the building for residential use only.
Boymelgreen said that he would utilize his personal experience in building luxury high-rises in Manhattan in the project.
Founded in 1991, Crescent Heights is one of the largest property developers in the US. It has built luxury projects in New York, Los Angeles, Chicago, Miami, Tampa, New Jersey, Boston and elsewhere. It is now expanding its activity overseas with projects in Israel, China and India. The company also bought the Ayalon Triangle lot in Ramat Gan for $38 million in August 2006, and plans to build a 60-storey residential high-rise on the site.
In recent months, Azorim sold a number of properties in the US and Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2007
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