Eli Tahari, the owner of a well-known New York fashion label, has bought the ZOA House in Tel Aviv from Kaldash Construction for $6.5 million. Tahari paid $2,800 per sq.m. for the 2,300-sq.m. building.
The high price is due to the building rights for a 25-storey high-rise to built over the existing structure. Built after independence in 1948, ZOA House is designated for preservation and may not be harmed. The high-rise can probably built over ZOA House, after its foundations are strengthened.
Kaldash bought ZOA House from the Zionist Organization of America (ZOA) for $6 million a year ago.
Israeli-born Tahari has resided in the US for many years, where he owns an exclusive New York fashion label, Tahari, which has an estimated turnover of $200 million a year. He plans to convert ZOA House into a fashion house, preserving its cultural ambiance, while simultaneously applying for an Urban Building Plan for the residential high-rise.
The ZOA sold ZOA House to Kaldash in order to repay its debts to the banks, mostly Bank Hapoalim (LSE:BKHD; TASE:POLI).
Kaldash recently decided to sell properties, of which ZOA is the first. "Globes" reported that the company also cancelled an option to buy two properties with Housing and Construction Holding Co. (Shikun u’Binui) (TASE:HUCN): Tel Aviv's Ha'Ohel Theater, zoned for the construction of a residential high-rise; and a lot in Neve Ilan, zoned for the construction of 100,000 sq.m. of office and high-tech space.
Published by Globes [online] - www.globes.co.il - on May 23, 2004