Canada Israel buys central Tel Aviv lot for NIS 217m

72-74 Harekevet St. / Imagin: Yashar Architects , PR

The company will build a 30-floor residential tower, a 30-floor office tower over a commercial floor, and a hotel at 72-74 Harekevet Street.

Canada Israel, controlled by Barak Rosen and Assaf Tuchmeir, has signed an agreement to buy a 3.5-dunam (0.875-acre) lot in Tel Aviv at 72-74 Harakevet Street, on the corner of Hagra Street, for NIS 217 million. The lot, adjacent to Electra Tower, was acquired from private landowners. The deal signed now follows a memorandum of understanding reported by the company in February.

Canada Israel will build a project on the site, designed by architect Avner Yashar, with a 30-floor residential tower, a 30-floor office tower over a commercial floor, and a hotel between the two towers. Built-up space in the project will total 42,000 square meters.

The company estimates the overall value of the project at NIS 1 billion. Canada Israel will continue receiving NIS 1 million in annual rent from the existing buildings on the site until the project gets underway.

The lot is located at the southern entrance to Tel Aviv near the La Guardia interchange in an area with major ongoing development that includes a number of new real estate projects, such as Electra Tower on Harakevet Street and Vitnia Towers (Delek Motors) in the Heharash compound. Canada Israel is very familiar with the area; it previously bought the police building on Harakevet Street, on which it built a residential and commercial building that was occupied several years ago.

The company's Israel Canada unit is listed on the Tel Aviv Stock Exchange and included in the Tel Aviv 125 Index and has significant activity in the Tel Aviv real estate market. In recent years, it bought a number of properties in the city, such as the Lapid site on Eilat Street, on which it is promoting a residential and hotel project; the site of the main branch of the Bank Leumi at the intersection of Herzl Street, Yehuda HaLevy Street, and Lilienlum Street, on which Israel Canada will build a combined residential and office tower; and Da Vinci Towers on Leonardo Da Vinci Street on the corner of Kaplan Street, consisting of two residential towers. Israel Canada also recently bought America House on Shaul Hamelech Street for NIS 140 million, and plans to upgrade it by increasing its construction rights there.

The company is also currently building, through the hotel arm it founded, a business hotel in the Midtown project, which it has built in the past year. The hotel, which has 140 rooms, is scheduled to be opened in the first quarter of 2020.

Canada Israel was represented by Adv. Shmuel Fleger and Adv. Inbal Perchik from the Goldman Seligman & Co. law firm. The sellers were represented by Adv. Zvi Chowers and Adv. Rula Dally-Mubariki from the Glusman Chowers Lahat & Co. law firm and Adv. Dor Shacham from the Hamburger Evron & Co. law firm.

Canada Israel said in response, "The current acquisition fits in with the company's strategy of creating significant projects and expanding the company's activity in both development and income-producing real estate and hotels in high-demand areas."

Published by Globes, Israel business news - en.globes.co.il - on July 31, 2019

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

72-74 Harekevet St. / Imagin: Yashar Architects , PR
72-74 Harekevet St. / Imagin: Yashar Architects , PR
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