Acro, Phoenix buy major Tel Aviv lot for NIS 211m

Tel Aviv offices  / Photo: Shutterstock, Shutterstock.com

The lot is for an office and apartment tower -  one of 14 high-rises planned for the Hasan Arfa site between Menachem Begin, Yitzhak Sadeh, Lincoln and Carlebach Streets.

Acro Real Estate, and The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) insurance company are buying a lot for construction of an office and apartment tower on the Hasan Arfa site in central Tel Aviv. The two companies' joint NIS 211.2 million bid in the tender triumphed over eight other bids for the lot. Bids in the tender averaged NIS 182.7 million. Acro and Phoenix's bid was not the highest, but sources close to the matter have informed "Globes" that a bid that was NIS 1 million higher was disqualified.

The lot, which covers 2,626 square meters, is located at the intersection of Menachem Begin Street, Yitzhak Sadeh Street, Carlebach Street, and Lincoln Street. According to a valid urban building plan, 23,000 square meters of space can be constructed on the lot. Under the Tel Aviv/5000 plan, there is a potential for 28,000 square meters, including apartments and offices. 25% of the tower will be zoned for homes, and the rest for offices.

The announcement by the tender winners stated, "Acro Real Estate has widespread activity on the new Yitzhak Sadeh site. The company is currently constructing the Alpha Tower, which will contain apartments and a business hotel, and the Acro Real Estate office tower. It also recently won, together with Phoenix and Yuvalim group, a large auction to buy three adjacent lots on the site. These lots, which cover an aggregate 10,400 square meters, are located at the intersection of Hamasger Street and 1185 Street (a new street connecting Hamasger Street and Menachem Begin Street. 1185 Street is a direct continuation of Mazeh Street)."

A total of 14 towers are planned for the Hasan Arfa site.

Israel Land Authority said, "Israel Land Authority today announced that Acro Real Estate had won the tender for constructing an office tower and 45 apartments on the Hasan Arfa site in Tel Aviv. The winning bid was NIS 211 million. A higher bid by Royal Luxury Buildings was disqualified because the supposed issuer of the guarantee submitted in the auction stated that it had never issued this guarantee."

Published by Globes, Israel business news - en.globes.co.il - on September 8, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Tel Aviv offices  / Photo: Shutterstock, Shutterstock.com
Tel Aviv offices / Photo: Shutterstock, Shutterstock.com
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