Huge deal signed for 100-floor Diamond Exchange tower

Ramat Gan credit: Shutterstock
Ramat Gan credit: Shutterstock

Ayalon Insurance has joined forces with Valor Byron and B.S.R. Group to develop and build the Ramat Gan project.

Ayalon Insurance (TASE: AYAL), Valor Byron Real Estate and B.S.R. Group have signed an agreement to collaborate in the planning and construction of a huge 100-floor tower project in the Ramat Gan Diamond Exchange district.

The companies will invest an estimated NIS 2.4 billion in the project on the site of South Africa House at the corner Menachem Begin and HaRakon Streets in Ramat Gan. Ayalon bought 79% of the building in September 2018 for NIS 45.5 million.

Ayalon together with Valor Byron and B.S.R. have now reached agreement with all the property rights holders in the 8.4 dunams (4.1 acres) of land surrounding South Africa House between 12-24 Menachem Begin Street and 3-13 HeRakon Street. The three companies will be able to build a 90-100 floor tower with 250,000 square meters of space.

The agreement signed allows the development and construction of the project, so that Ayalon - the owner of the largest rights in the complex - will allow Valor Byron and B.S.R to develop the project, while retaining the most rights in the new project. In the agreement, South Africa House has been amalgamated with the adjacent plots for which the companies reached an agreement with the rights holders, to create one planning unit.

As part of the project, old buildings in the complex will be demolished, and a high rise will be built, in accordance with the outline plan for the Ramat Gan Diamond Exchange district, which was approved in February 2022 and allows for the large scale increase in building rights. The project will be directed by architect Avner Yashar.

Ayalon Insurance CEO Sharon Reich said, "We believe that joining forces with developers Valor Byron and B.S.R. provides the project with strong financial support, the highest level engineering, experience and intensive development that will assist in its success."

Published by Globes, Israel business news - en.globes.co.il - on May 23, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Ramat Gan credit: Shutterstock
Ramat Gan credit: Shutterstock
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