NIS 2b project will build Israel's tallest skyscrapers

Electra and Pangaea Real Estate are in talks to buy the Tnuva lot in Tel Aviv.

Electra Ltd. (TASE: ELTR), controlled by Georg Salkind, and Pangaea Real Estate Ltd. (TASE:PNGD), controlled by Barak Rosen and Assaf Tuchmayer, are in talks to buy the Tnuva lot from Tnuva Food Industries Ltd. at the corner of Shaul Hamelech Street and Menachem Begin Road in Tel Aviv for NIS 565 million. They plan to build three 65-storey skyscrapers at an investment of NIS 2 billion for the project on the site. The buildings will be Israel's tallest buildings.

The Tnuva lot has a net area of 13 dunam (3.25 acres) and a current building permit for 124,000 square meters plus 2,500 parking spaces. A shopping center, similar to the nearby Azrieli Center, will be built beneath the commercial and residential space. The lot was previously used by Tnuva as a dairy. Electra and Pangaea plan to buy the lot in equal shares.

The parties have signed a no shop agreement, which will be valid through May 1, for which Electra and Pangaea paid a NIS 1 million deposit.

IBI Investment House real estate analyst Shay Lipman said, "This is not the first collaboration between Electra and Pangaea, which also jointly own Planetgrad in Russia. The two companies also almost acquired control of Heftziba."

Electra's share price fell 1.4% by mid-afternoon to NIS 417.90, giving a market cap of NIS 1.5 billion, but Pangaea's share price rose 2.6% to NIS 1.08, giving a market cap of NIS 147 million.

Published by Globes [online], Israel business news - - on April 4, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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