The Ministry of Defense will sell most of a compound known as Keren Hakirya in Tel Aviv for $25-30 million, in order to finance construction of the ministry's new office block. The decision was made at a meeting held by Moshe Edri, deputy director of Israel Land Administration (ILA), Ariel Kappon, director general of the Tel Aviv Municipality and Ministry of Defense representatives last week.
The cost of construction of the offices will be $60 million.
A decision was made last year to market a 10 dunam (2.5 acres) compound to private entrepreneurs in order to finance its construction.
It now appears that proceeds from selling the compound will yield $30-35 million, which will not be enough to finance the construction of the offices.
At the meeting last week, it was agreed that the Ministry of Defense would put another plot in the compound, known as Keren Hakirya, up for sale.
It was agreed that the ILA will transfer 4.5 dunam (1.125 acres) of the plot to the Tel Aviv Municipality in order to widen the intersection at Shaul Hamelech Street and Petah Tikva Road as part of the road improvement project along the Petach Tikva Road.
The Ministry of Defense will sell plots in the compound to entrepreneurs in order to finance the construction.
The Keren Hakirya plot is expected to be used for the construction ofoffices, as presented in a town planning and building committee plan that the municipality will approve.
The offices will be part of a comprehensive renewal plan for the Kirya, turning it into Tel Aviv's new office center.
Published by Israel's Business Arena - 2001.