Azrieli-Avraham Hostel – Capital Market transaction completed

Azrieli Group
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Updates that the agreement to purchase 100% of the rights has been signed

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In the area of ​​Avraham Hostel in Tel Aviv, for NIS 180 million. Azrieli will pay purchase tax on the transaction in the amount of NIS 10.8 million. The hostel, at the intersection of Levontin and Mikve Israel streets and near Rothschild Boulevard, will be converted into a project with 110 apartments for rent – after the end of Avraham Hostel’s current contract with Bezeq, which expires in 2035.

This is an area of ​​about 2.4 dunams on which a 5-story building is built above a basement, with the entire built area amounting to about 9,500 square meters. Azrieli is deepening its foothold in the residential rental area, while among other things it is promoting the Azrieli Town and Spiral Tower projects, which are expected Including about 450 housing units. For a decade, Azrieli has owned 67 apartments for rent in the Azrieli Modiin Mall complex. In addition, the adjacent “21” project is under construction, and about 80 apartments for rent have been built next to office, commercial and 84-room hotels. In total, the property portfolio under Azrieli’s development currently includes about 600 apartments.

“The deal is an important milestone in a strategic move that we are leading to deepen our activity in the residential housing industry for rent,” she said. Dana Azrieli, Chairman of the Azrieli Group. “Many of the new projects we are initiating include mixed-use plans and this deal is a natural continuation of the increase in activity in this industry.”

She added that “against the background of a growing market in major cities around the world, including the rise in housing prices along with a significant shortage of land in areas of demand and a significant need for quality long-term rental housing, we believe we can develop further significant activity. “The local housing market suffers from a minority of entire complexes owned and managed by a single developer and we are confident that the Azrieli Group has the ability to take this activity to the next level.”