The Tel Aviv Magistrates Court has ruled that a company controlled by Nakash Brothers cannot carry out renovations of a well-known building in Tel Aviv in which it is defined as a protected tenant.
The building in question is Agavava House, designed by Joseph Tischler and built in 1934, which occupies the southern side of Knesset Square. The building, has three floors above a commercial floor, in which the Hotel Monopol operated for many years. Two years ago, the hotel and restaurant were shut after the Tel Aviv Municipality refused to renew their business licenses on the grounds that the building was unsound.
Brothers Walid and Abed Abulafia, who own 32% of the rights in the building, claimed that the company that held the protected tenancy, which had been taken over by Nakash Brothers, was carrying out extensive work on the building, amounting to some NIS 20 million, without the required permits and without their agreement.
The company argued that the work was intended to strengthen the old building so that the business license could be renewed.
The claimants managed to prove to the court that the work on the building went well beyond strengthening its fabric, and included construction of a swimming pool and an elevator, representing substantial changes to the leased building.
The court ruled that the work represented a fundamental infringement of the claimants' property rights, and awarded them NIS 50,000 costs.
Asked for comment, Nakash Brothers said, "We have still not received the court's ruling. When we receive it, we will comment accordingly."
Published by Globes, Israel business news - en.globes.co.il - on June 4, 2020
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