Azrieli Group Ltd. (TASE: AZRG) is purchasing the land at 21 Levontin Street in Tel Aviv on which stands the Abraham Hostel for NIS 180 million. Prior to being a hostel, the building served as a Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) telephone exchange and a post office branch. In 2016, Abraham Hostels Group leased the upper floors of the building for 20 years. Azrieli plans building 110 apartments at the location for rental.
The building is in an attractive location just a few minutes' walk from Rothschild Boulevard and the La Guardia Interchange. The lot is 2,470 square meters in size with 9,000 square meters of space in the building of which 5,600 square meters is leased to the Abraham Hostel as well as to Pelephone Communications Ltd., Partner Communications Ltd. (Nasdaq: PTNR; TASE: PTNR) and Cellcom Israel Ltd. (NYSE:CEL; TASE:CEL).
Azrieli is already planning to build 450 apartments for rent in its Azrieli Towers Spiral Tower project and its nearby Azrieli Town project. Azrieli already has 67 apartments to rent in its Modi'in shopping mall.
Azrieli Group chair Danna Azrieli said, "We have gained major experience in planning complex projects, including a range of uses in the world's growing city centers market. With a rise in housing prices and a significant lack of land in demand areas, as well as the major need for a supply of quality homes for long term rent, we believe in our ability to develop major additional activities, which will be a growth engine with large potential."
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2021
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