A huge deal is in train for one of the most desirable and prestigious residential sites in Tel Aviv. The Ha'ir Hahadasha (New City) group will buy the Assuta site on Jabotinsky Street in the north of the city. The group is owned by Dror Halevy and Raviv Zoller. It will buy the site from Boymelgreen Capital Ltd. (TASE:BMGN), controlled by Shaya Boymelgreen, and Lamden Holdings Ltd., controlled by managing director Chen Lamden, which own it in equal shares.
Market sources believe that, despite the site's central position, New City will offer apartments at prices substantially below market to its members.
Since buying the site, Boymelgreen has been trying to change the Urban Building Plan to allow construction of a 38-storey tower with 200 residential units and 500 parking spaces. However, in its battle with local residents who opposed the change, Boymelgreen Capital suffered a blow when the Tel Aviv Regional Planning and Building Commission cut the height of the tower to 26 stories, although the committee did not accept the residents' request to reduce the construction volume, and left the building rights at 19,000 square meters, 300% of the site's net area. In addition, the developers must allocate 100 parking spaces to local residents, and preserve three historic buildings of the Assuta Hospital that currently stands on the site, with a total area of 2,800 square meters.
PR firm Rubins Steinmetz, which represents New City, said in response, "The company is examining several centrally located projects for its members, and as soon as a deal is closed we will announce it."
Published by Globes [online], Israel business news - www.globes.co.il - on September 9, 2009
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