New City, owned by Dror Halevy and Raviv Zoller, are selling 98 apartments in its Icon Tel Aviv project on Ibn Gvirol Street to members of a buyers group. Starting prices for a two-room apartment are NIS 1.49 million; a parking space in the building's underground parking garage costs an additional NIS 250,000.
New City and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) bought the building at 54 Ibn Gvirol Street at the corner of Maneh Street, near Rabin Square, for NIS 74 million from Kardan NV (TASE: KRNV;AEX:KARD) water unit Tahal Group International BV. The building zoned for residences, was used as Tahal's offices, until it vacated the property a year ago. It is currently unoccupied.
New City will demolish the building and build a 10,000-square meter building with four wings. It will have 98 two to five-room apartments, garden apartments, and penthouses. The asking price of a 61-square meter three-room apartment without parking is NIS 1.84 million, and NIS 2.08 million with parking. Heavy demand for these apartments is expected from investors, because of their relatively low price for the area, and the apartments can be leased without parking.
The asking price of a 90-square meter four-room apartment with parking is NIS 3.13 million. The asking price of a 275-square meter penthouse with three parking spaces is NIS 13.8 million, reflecting a price of NIS 50,000-58,000 per square meter.
Published by Globes [online], Israel business news - www.globes-online.com - on January 15, 2014
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