Tel Aviv Land Parcels Set Aside for High-Rises Sold Off

The lots have an approved building plan for two 44-floor residential towers, while a 43-floor residential tower has already been completed, and another one is under construction.

06 April 2020 | Tel Aviv, Israel

Yitzhak Tshuva is continuing to sell off assets due to the fall in the value of his stake in Delek Group Ltd., today worth less than ₪700 million (US$195 million), while his private debt to the banks is ₪1.5 billion (US$418 million). Tshuva has signed a memorandum of understanding with Hagag Group Real Estate Development Ltd. to sell lots three and four in the Park Bavli project in the Old North of Tel Aviv for ₪400 million (US$112 million). The lots have an approved building plan for two 44-floor residential towers with 380 apartments. Hagag Group says that it will try to increase the height of the towers to 50-floors and the number of apartments in the two high-rises to 500.

The memorandum of understanding requires final approval by Hagag Group's board of directors and Yitzhak Tshuva within seven days when a binding agreement for the sale of the land will be signed.

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Park Bavli Lot 2

Park Bavli Lot 3

Park Bavli Lot 4

The Plaza International

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Peri Group

Hagag notified the Tel Aviv Stock Exchange (TASE) that it will finance the purchase from its own equity and bank credit.

Tshuva's Plaza International is already building on lots one and two of Park Bavli. A first 43-floor residential tower has already been successfully marketed and occupied and a second tower is under construction and scheduled for completion and occupancy in 2023.

For more on this story, go to Globes.