Carmel Winery sells stake in large Tel Aviv plot

Salame St. plot, photo: Eyal Yitzhar

The stake in south Tel Aviv's Salame St. was sold for NIS 110 million to Trigo Investments.

"Globes" reports that the Carmel Winery is selling its stake in a south Tel Aviv plot for NIS 110 million. The land is being purchased by Trigo Investments and Real Estate Group and the Shine family. The land includes three plots in 58-62 Salame Street, near Herzl Street, in Tel Aviv, 50% of which are owned by Carmel Winery and the rest owned by French investors.

Income-producing property currently operates on the plots: a gas station, a building for conservation used by the Bezalel Academy of Arts and Design and additional buildings used by the fashion brand Honigman, sold three years ago by the Honigman family to French investors.

The urban building plan currently in place for the plot defines it as full, but in late 2015 the District Planning and Building Committee approved a plan changing the plot's zoning to residential, commercial and business, including building rights for 200 apartments with an average size of 80 sqm, 4,500 sqm of business space and 2,330 sqm of aboveground commercial space, in addition to 1,000 below-ground commercial space, and 500 underground parking spaces.

Project architect is Ilan Fibko. The plan was submitted to the District Planning and Building Committee, which is expected to deposit the plan. After the plan is approved, the buyers are expected to pay a betterment tax, estimated at NIS 50 million. Adv. Harel Yariv from the GoldBlatt, Gindes, Yariv Law Offices represented Carmel Winery, while Adv. Mira Bornstein from the Hartavi Bornstein Basson & Co. Law Offices represented Trigo Real Estate.

Two months ago, Trigo acquired a 13% stake of the Pi Glilot company and 6.4 dunam (about 1.6 acres) in the Pi Glilot complex (owned by Sonol Israel Ltd.), from Azrieli Group Ltd. (TASE: AZRG) for NIS 130 million. Trigo, controlled by Tal Peretz, Gal Peer and Ron Novotony, has held further plots in the Pi Glilot compound for several years. A plan, zoning the space for 12,000 apartments and 700,000 sqm of commercial and occupational space, is expected to be approved.

Carmel Winery (formerly Carmel Mizrahi) was founded in 1889 in Rishon Lezion and Zikhron Yaakov by the Baron Rothschild. Carmel Winery was under joint ownership of the Wine Growers' Association until 2013, when control was acquired by a group of investors at a market cap of NIS 130 million. This investor group includes the Kedma Capital fund headed by Uri Einan, Gilad Shavit and Chairman Gilead Halevy, Jewish-British millionaire Leo Noé, formerly a co-owner of British Israel, the Jesselson family (former co-owners of Promedico and one of the investors in ICQ), the Schottenstein family, controlling the American Eagle fashion brand, Jewish-French businessman Pierre Besnainouand and businessman Raymond Ben-Shoshan.

Published by Globes [online], Israel business news - - on July 25, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

Salame St. plot, photo: Eyal Yitzhar
Salame St. plot, photo: Eyal Yitzhar
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