Israel businessman and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) controlling shareholder Shlomo Eliahu has sold his remaining holdings in the Jerusalem of Gold luxury apartment project in downtown Jerusalem for NIS 140 million, a source close to the deal has told "Globes." Eliahu has sold 17 apartments, a house with a preservation order, a car park with 209 parking spaces, and a 4,000 square meter commercial area.
The buyer is Hadas Capital, a real estate investment and development company, controlled by Hillel Zuravin and Asher Sebbag. As far as is known, these are Eliahu's last assets in Jerusalem, after he sold the Mount Zion Hotel on Derekh Hebron last year.
Jerusalem of Gold is a luxury residential project in Rabbi Akiva Street (off Hillel Street) in downtown Jerusalem, designed for foreign residents. Eliahu and the Shechter family bought the lot in the 1990s for NIS 25 million. Following disputes with the Shechter family, Eliahu bought their share of the project seven years ago for NIS 400 million. Two years ago, Eliahu sold an adjacent lot to Jerusalem of Gold for NIS 305 million to Sela Capital.
The 17 apartments currently being sold in Jerusalem of Gold, total 3,800 square meters, and are valued at NIS 103 million. Each apartment is about 200-300 square meters in size and is located on the higher floors of the project. The apartments reflect a price of NIS 27,000 per square meter. The buyers have received permission from the Jerusalem Municipality to divide up some of the apartments into smaller units.
At the same time, Sela Capital is asking the Jerusalem Municipality to enlarge the number of apartment units in the Jerusalem Spirit project, being built on the adjacent lot bought from Eliahu. Sela would like three more floors to be added, so that the project will have 27 floors. Market sources believe that half of the apartments in the project have already been sold to foreign residents.
A 185 square meter penthouse in the Jerusalem Spirit project has recently been sold for NIS 13.75 million, according to the Israel Tax Authority.
Sela Capital and Shlomo Eliahu declined to comment on this report.
Published by Globes, Israel business news - en.globes.co.il - on January 26, 2021
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