NIS 513m bid wins tender for Jerusalem old Shaare Zedek lots

IBA headquarters -Old Shaare Zedek bldg

The tender for the historical hospital building and surrounding land for construction of homes, hotels, offices and stores has been awarded to Canada-Israel and Pangaea.

The tender for the Old Shaare Zedek hospital building in Jerusalem and surrounding land has been awarded to Canada-Israel and Pangaea Real Estate Ltd. (TASE:PNGD), both companies controlled by Asi Tuchmair and Barak Rosen. The winning bid was NIS 512.7 million, far higher than expected and nearly double the minimum bid requirement of NIS 285.7 million.

The tender was issued in March and according to the Israel Land Authority, a high number of bids were submitted, demonstrating the major demand for the land. Bidders included the biggest companies in Israel's real estate development sector such as Shikun & Binui Holdings Ltd. (TASE: SKBN), Azorim Investment, Development and Construction Ltd. (TASE: AZRM) and Prashkovsky Investment & Construction Ltd. (TASE: PRSK).

Five lots are involved with rights to build 240 apartments, commercial space, offices and hotels.

The old Shaare Zedek hospital is at 161 Jaffa Street midway between the Central Bus Station and Mahanei Yehuda market. The hospital operated between 1902 and 1980 and after being abandoned for some years was renovated in the 1990s and became the headquarters of the Israel Broadcasting Authority. There is also a small cemetery on the site.

The lot containing the Shaare Zedek building itself - a preserved building - has building rights for a 50-room hotel, conference hall and other services for the hotel. Two other lots each have a permit for 120 apartments in 24-floor towers. The fourth lot is zoned for 4,000 square meters of offices, commercial premises and hotels as well as public spaces and the fifth lot is also for offices and commercial space.

The five lots are adjacent to the new Jerusalem western entrance business center which will have 20, 18-24 high rise buildings covering 75 acres. The area is already served by the Central Bus Station, new Yithak Navon railway station and the Jerusalem light rail Red Line and three other light rail lines are planned to pass through.

Jerusalem Mayor Moshe Lion said, "The large number of bids in the tender expresses the confidence real estate companies have in the growing Jerusalem economy. Hundreds of apartments, commercial space, hotels and offices along the route of the light rail is a major addition to the city and will strengthen and develop its economy."

Published by Globes, Israel business news - en.globes.co.il - on July 7, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

IBA headquarters -Old Shaare Zedek bldg
IBA headquarters -Old Shaare Zedek bldg
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