U. Dori Construction Ltd. (TASE: DRCN) has signed a contract with Berggruen Residential Ltd. (TASE:BRGN.B1) to build its Meier on Rothschild luxury residential high-rise for NIS 230 million plus VAT.
Located at the corner of Rothschild Boulevard and Allenby Street in Tel Aviv, the 45,000-square meter 32-storey building will have 121 apartments. Construction is scheduled to be completed in 30 months, and Dori Construction will pay compensation if it misses the deadline.
Berggruen Residential is owned by Nicholas Berggruen and Hagag Cohen Investments. The Meier on Rothschild project is the company's premier project, after it sold several properties slated for preservation on Nahalat Benyamin Street in Tel Aviv, and 15 apartments in the Savion Tower project in Ramat Gan last year.
Berggruen bought the 3.6-dunam (0.8-lot) for the Meier on Rothschild project in 2006 for NIS 126 million. As part of the purchase contract, the company undertook to pay the betterment tax levied for changing the building plan, and it is now seeking to add five floors to the tower, for a total of 37 floors. By the end of June, the company had sold apartments for NIS 290 million altogether.
Dori Construction is the contracting arm of Uri Dori Engineering Works Corp. (TASE: DORI), controlled by Gazit-Globe Ltd. (TASE: GLOB).
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2010
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