One of Tel Aviv's most prominent properties is in the advanced stages of being sold: the Beit Lessin lot on Weizmann St., owned by Azorim Investment, Development and Construction Ltd. (TASE: AZRM), controlled by Hershy Friedman, and the Rahamim family.
Following lengthy negotiations, which reached their culmination last Friday, understandings were signed for a deal priced at NIS 273 million. According to the understandings reached, Azorim and the Rahamim family will sell the lot to a private company Gindi-Friedman, together with a number of investors who will acquire 50% of the rights. Tzameret Aviv Real Estate Agency brokered the deal.
Friedman today confirmed that understandings had been signed for the deal, and that the private companies and investors were planning the construction of a 28-floor tower with 86 apartments and six underground parking floors. The Rahamim family, which owns half of the rights, also confirmed the particulars. "The signing took place on Friday," Shaul Rahamim told "Globes" today, "but there are still details and conditions to be closed. I think that we'll know within two months whether the deal will be finally closed."
The Beit Lessin lot covers 3.5 dunam (0.875 acres) at 30-34 Weizmann St., corner of Zikhron Yakov St., in central Tel Aviv, within walking distance from Kikar Hamedina. As of now, the lot contains an income-producing building, housing banks, a cafe, and a playhouse, among other things. Under the plan, this building, which contains 3,000 sq.m. of built-up space and generates NIS 4.5 million annually for its owners, is to remain as is. Next to the existing building, there is another unbuilt lot on Zikhron Yakov St. with a parking lot, on which a 13,500-sq.m. residential project is planned. The land is among the most expensive in Israel.
It was previously reported that billionaire Teddy Sagi was negotiating to buy the property for NIS 268 million but the deal apparently fell through. The Histadrut (General Federation of Labor in Israel) sold the Beit Lessin lot in 2000 for $14.2 million to a group of private investors. As of now, there is an approved urban building plan for the lot designed by Moshe Tzur Architects & Town Planners.
Azorim refuses to comment
A number of real estate companies and developers have negotiated to buy the lot in recent years. One of the problems preventing a deal has been the Ministry of Defense communications beam passing over the site, which has restricted construction in the area. This problem was solved through an agreement between the Ministry of Defense and the Tel Aviv and Netanya municipalities providing for the rerouting of the beam. Another problem with the project was a dispute concerning the amount of betterment tax to be charged by the Tel Aviv municipality and concern about claims for compensation by residents and owners of properties bordering the plan. These problems were also eventually solved by the reduction of the betterment tax and the fact that three years have passed since the plan was approved, meaning that objections to it can no longer be made.
Published by Globes [online], Israel business news - www.globes-online.com - on April 5, 2015
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