The dispute has been settled and construction of a high-rise office project in Bnei Brak can move forward. Tlalei Barak Ltd., owned by haredi businessman Shlomo Teitel has recently acquired the rights from some of the owners of the 1,553 square meter lot in the BBC area in Bnei Brak.
Following the purchase, the company can moved forward together with the other owners on building the 30-floor high-rise with 28,000 square meters of office space worth at least NIS 400 million. The high-rise will be built at 20 Masada Street on lot 148, which was owned jointly by five private individuals.
Lot 148 and the adjacent lot 149, owned by Tlalei Barak, have been joined into one bloc, as part of the BBC masterplan, into an overall lot of 2,771 square meters. For many years the plan was stuck due to disagreements among the owners of lot 148. Under the settlement Tlalei Barak has acquired one third of the lot and can now build the new tower.
Lot 148
The dispute over lot 148 began years ago. In 2019, two of the owners filed a request to the Bat Yam Magistrates Court to break up the partnership enabling each of the owners to sell their rights in the land separately and settle the dispute. Judge Yigal Nimrodi accepted the request and ruled that the lot would be sold as part of a procedure managed by the receiver Adv. Ran Braz.
The procedure began several months ago in which Tlalei Barak offered to buy the rights of three of the owners of lot 148, representing one third of the lot. The purchase offer was submitted by Tlalei Barak with the two other owners of its lot, to the owners who had submitted the request to dissolve the partnership. This offer worth NIS 11 million was accepted, reflecting the value of NIS 33.25 million for the entire plot, about NIS 3 million more than the appraisal for the land at the start of the procedure.
The appraisers Nehama Bogen and Sami Moyal estimate the value of each square meter on the site at NIS 13,500. Thus 28,000 square meters of office space is worth NIs 377 million before the value of public spaces and parking in eight underground floors is taken into account. There are currently 15 towers in the BBC district with other planned for construction. There are those that claim that the district is already swamped with too much office space in a sector that is in crisis.
Yitzhak Cohen, one of the owners of Tlalei Barak said, "The company welcomes the procedure and its completion. Together with the other owners, we will invest in the planning process according to Tlalei Barak's standards and we will immediately launch accelerated marketing of the entire tower." Tlalei Barak estimates that the tower will be occupied in about five years."
The property's receiver Adv. Ran Braz said, "The tender procedures were carried out during a challenging period. Despite the complexities, and with the backing of the court, we were able to realize the rights to the lot at the best price. In doing so, we were able to bring to an end to protracted disputes between the parties, which stretch back many years, and pave the way for the development of the land and the construction of a new office tower."
Published by Globes, Israel business news - en.globes.co.il - on June 10, 2024.
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