Published On: Thu, Sep 4th, 2014

Teddy Sagi Buys Shari Arison Tel Aviv Land for $23 Million

Tsvi Propes St

Teddy Sagi is entering the residential real estate market in Israel. His group has won a pricing procedure for the rights to land in northwest Tel Aviv owned by Shari Arison-controlled Housing and Construction Holding Co.(Shikun u’Binui) (TASE: HUCN), which put half of it up for sale.

Sagi won the pricing yesterday with a bid of $23 million, reflecting $228.500 per land per housing unit. According to the Tel Aviv 3700 building plan for the land he bought, 100 housing units can be built with an average area of 135 sq.m. The purchased land consists of two lots in bloc 6632 of the plan, which is in the advanced approval stages. Following the deal, Sagi and Housing and Construction will be partners in land that includes rights to a total of 200 housing units.

Five bids were submitted in the pricing process, with Sagi’s bid beating out the second place bid, submitted by Israel Canada ITR) Ltd. (TASE:ISCN), together with Acro Real Estate. The difference between the two bids was $71.500. Israel Canada owns a nearby lot for construction of housing units in the same building plan.

The Tel Aviv 3700 building plan is located in northwestern Tel Aviv. The lot purchased by Sagi is north of Tsvi Propes St. and between Kedushei Hashoa St. and 200 St., east of the Sea and Sun project.

The Tel Aviv 3700 plan covers 1, 900 dunam (475 acres) from Sde Dov in the south to the municipal border between Tel Aviv and Herzliya in the north. The plan zones the area for construction of 12, 000 housing units, 50, 000 sq.m. of hotels, a 150, 000-sq.m. industrial zone, and 70, 000 sq.m. of commercial space. The plan also allots 500 dunam (125 acres) for a park. Now that the state has ruled that Sde Dov Airport will be removed in the coming years, real estate sources believe that the height restriction on construction in the original plan, which was due to the airport, will be repealed, and that additional housing units will be allowed under the detailed plan to be approved in its place. The entire section is divided into five detailed plans, under which building permits can be issued. After the Tel Aviv 3700 building plan is approved for validation, it will be discussed separately in the Tel Aviv Planning and Building Committee. Validation of the Tel Aviv 3700 building plan is expected in the coming weeks, following many years of discussion.

Sources in the Teddy Sagi group confirmed the figures, and added that Sagi planned to buy additional lots in this section in the near future.

The Housing and Construction board is expected to approve the sale agreement in the coming days.

Published by Globes [online], Israel business news – www.globes-online.com

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