Hagag Group Real Estate Development Ltd. (TASE: HGG) will build a 30-storey high-rise on Tel Aviv's Rothschild Boulevard. They acquired the property through the acquisition of 50% of Head Master Ltd. for NIS 18 million from Digal Investment and Holdings Ltd. (TASE: DIGL) by Hagag subsidiary Regency Jerusalem Hotel Ltd. (TASE:REGE-L).
Hagag acquired Regency in December. Head Master's only important asset is a lot on the block between Rothschild Boulevard, Yehuda Halevi Street, Shadal Street, and Yavne Street. Under the Urban Building Plan for the site, approved last month, the lot is zoned for a 30-storey 13,000-square meter building with an 18,250-square meter nine-level underground parking garage.
Hagag plans to build a mixed-use building with office or hotel space on the lower floors, and luxury residences on the upper floors.
Head Master's other properties included a lot at 84 Rothschild Boulevard, which was sold to a buyer's group, and a building slated for preservation on Shadal Street, and a stake in a six-floor office building at 31 Yavne Street.
Hagag's share price was unchanged at NIS 2.38 today, giving a market cap of NIS 104 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2012
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