Financing of half a billion shekels for a tower block in the Bitsaron neighborhood in Tel Aviv
Walla! Real Estate has learned that the financing for the project, which is to comprise 27 floors and 170 apartments on a residential avenue in the planning between Yigal Allon Street and HaHaskalah Avenue, is to be provided by Discount Bank and Clal Insurance
31.12.17| yael darel
The residential project of real estate companies Mivneh and Tidhar, planned for construction in Tel Aviv’s Bitsaron neighborhood, will receive funding and project financing amounting to around half a billion shekels from Discount Bank and Clal Insurance.
The project is to be built on the corner of Meitav and Amminadav streets in Tel Aviv’s Bitsaron neighborhood. The project is for a 27-storey residential tower, comprising 170 housing units, to be constructed above a ground-floor arcaded passageway. The project is being executed as part of a joint venture between the owner of the land, Shmey-Bar (I.A.) 1993 Ltd. of the Mivneh Group, and Tidhar Amminadav Development of the Tidhar Group, which will also act as the project’s executing contractor.
The project is to be built on an area of approximately 5,900 square meters, as part of a residential avenue planned between Yigal Allon Street and HaHaskalah Avenue in the neighborhood. According to previous publicity on the project, the mix of apartments in the building will included 2-5 room apartments, as well as mini-penthouses and penthouses.
The scope of the financing to be provided by Discount and Clal for the project is estimated at approximately 500 million shekels, to be provided by the bank and the insurance company in equal measure. As part of the project financing, Discount and Clal will make financial credit available for the construction of the project in an amount of approximately ILS 100 million shekels. Discount will furnish sales guarantees amounting to approximately 200 million shekels, and Clal will furnish sales policies amounting to approximately 200 million shekels in favor of the purchasers of the project’s apartments.
The developers were represented by attorneys Shmuel Lechner and Renana Feit Eyal of Naschitz Brandes Amir. Tali Richman and Shirley Mishael led the deal on behalf of Discount Bank, and Oded Malka and Ofer Nachman led the deal on behalf of Clal. The financing entities, Discount and Clal, were represented by Adv. Assaf Englard, Head of the Banking and Finance Division at law firm Hamburger Evron & Co., and Adv. Gilad Goni from his office.