The Jerusalem Municipality and Israel Land Authority have announced the awarding of the first tender for the Sha'ar Hair Western Entrance project. The tender is for the plot next to the new Yitzhak Navon railway station and the construction of two 36-floor towers with 78,000 square meters for mixed commercial, office, hotel and public use.
The winner of the tender is the joint bid by Amot Investments Ltd. (TASE:AMOT) and Allied Real Estate Ltd. with an offer of NIS 108.18 million not including VAT and development costs, which will be NIS 34 million. This was the only bid for the tender. A second tender for a nearby project will be issued next year.
The Jerusalem Municipality and Israel Land Authority are currently pushing through a new plan for the Western Entrance project, which would increase the building rights these two towers to 40-floors each and a total of 102,000 square meters with residential properties added to the mixed use zoning.
Amot and Allied estimate that the overall investment in the project will be NIS 1.1 billion and that the timetable will include one-two years for planning procedures and licensing and a further 5-6 years for completing construction.
The Jerusalem Western Entrance project will become the capital's new business center and will include 20 high-rise buildings of 18-40 floors for commercial, office, hotels, public and cultural amenities, and residential use.
The tender, which has now been awarded, is part of the K section of the Western Entrance project that includes Jerusalem's transport hub of the railways station, central bus station, three light rail links, 1,300 vehicle underground parking and a new underground section of the Shazar Boulevard highway.
Jerusalem Mayor Moshe Lion said, "The successful marketing of the K lot is a vote of confidence in Jerusalem and its economic potential and the belief that the business sector will buy into the substantial developments that are taking place here. All this is part of the strategy of promoting the city in all areas. This is another stage in transforming Jerusalem into Israel's business capital. This area will be a magnet for businesses, both inside and outside Jerusalem, while being a link to the cities in the center of the country and providing additional job options for Jerusalem's residents.
Published by Globes, Israel business news - en.globes.co.il - on June 15, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020