Isrotel Ltd. (TASE: ISRO) and White City Buildings have bought the Dizengoff 99 building in Tel Aviv from the heirs of the Matalon family for NIS 62 million. Each company will own 50% of the building, which will be converted into a city hotel by White City Buildings, owned by chairman Itzik Ben Shoham, and then operated by the Isrotel chain. Isrotel will then pay White City Buildings rent on the 50% that the developer owns.
Dizengoff 99 is famous building in Israeli folklore because of the 1979 cult movie of the same name produced by Avi Nesher about the lifestyle of young people in the city.
The building stands in a 1,200 square meter lot and is slated for preservation. The three-floor building itself has 2,000 square meters and White City and Isrotel plan adding basement parking and requesting rights to add more floors. The commercial floor at street level will also be preserved.
Estimates are that buying the land, planning, preservation and construction work will cost NIS 150 million. The project is being designed by Orionn Architects and work should take three years.
Ben Shoham said, "It is a great privilege for White City Buildings to continue to lead the tradition of preserving historic buildings in Tel Aviv and make them accessible to the public at large. I am convinced that expanding our operations to the hotel sector together with our successful partner Isrotel and our link-up with the city and its cultural values and nostalgia will help us construct one of the most attractive and special hotels that have been built in Tel Aviv."
Isrotel CEO Lior Raviv said, "This is a major step in deepening our operations in the city hotel world. In the innovative hotel, there will be a range of hotel units and we will create a link between the old and the new and give expression to the sentimental and cultural value of the location and its rich past. We will be delighted to invite to the opening Gidi Gov, Meir Suissa, and Anat Atzmon (the main actors in the Dizengoff 99 movie) to see how their former legendary shared apartment has been upgraded."
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2018
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