Income-producing real estate firm Azrieli Group Ltd. (TASE: AZRG) is still increasing the amount of its office space. The company today reported that it had purchased 19 dunam (4.25 acres) of land in the eastern part of the Kiryat Arie industrial zone in Petah Tikva near another office project that it owns. The deal, which is slated for completion in two months, amounts to NIS 91 million, plus VAT. The company is also expected to pay NIS 5.5 million in purchase tax.
The land being acquired is owned jointly by real estate tycoon Amos Luzon, owner of Luzon Group (TASE: LUZN), and Tidhar Group. It has construction rights for 53,000 square meters, plus underground parking floors. Azrieli plans to utilize the full construction rights by constructing a 53,000-square meter office building, which will be in addition to its nearby office building with 20,000 square meters.
Luzon and Tidhar acquired the land in July 2015 from Isralom Properties, controlled by Matthew Bronfman and Shalom Fisher, for only NIS 60 million, meaning that Luzon and Tidhar's profit on the deal is NIS 30 million - a 50% return on their investment.
Published by Globes [online], Israel Business News - www.globes-online.com - on September 18, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017