On a lot on Harakevet Street that was purchased from private owners, the Company will build a mixed-uses project featuring a residential tower and an office tower, each with 30 floors. The project will also include commercial space and a hotel.

31.07.2019 | Shlomit Tzur

Israel Canada, owned by Barak Rosen and Assi Tuchmeir, signed an agreement for the purchase of a 3.5-dunam lot on 72-74 Harakevet Street, corner of Hagra Street in Tel Aviv, for NIS 217 million.  The lot, located adjacent to the Electra Tower, was purchased from private landowners. The deal was just signed, following a memorandum of understanding that was reported by the Company last February.

The Company will build a project on the lot, designed by Architect Avner Yashar, and will feature a 30-floor residential tower, a 30-floor office tower above a commercial floor and a hotel between the two towers.  The project’s total area is estimated at 42,000 square meters.

The Company predicts that the value of the entire project will total NIS 1 billion.  Until the project is implemented, the Company will receive rent from the existing buildings on the lot totaling NIS 1 million per year.

The lot is situated at the southern entrance to Tel Aviv near the La Guardia interchange, in an area that is continually developing, and features a number of new real estate projects such as the Electra Tower on Harakevet Street and the Vitania Towers (Delek Motors) in the Haharash complex.  Canada Israel is well acquainted with the area.  In the past, it purchased the police building on Harakevet Street, on which it constructed a residential and commercial building, which was occupied a few years ago. 

The Company’s new name is Israel Canada and it is a publicly-traded company on the Tel Aviv Exchange 125 index and is a significant player in Tel Aviv’s real estate market.  In recent years, it has purchased a number of properties in the city, including the Lapid complex on Eilat Street, where the Company has slated the construction of a residential project and hotels; the Bank Leumi central branch complex at the intersection of Herzl – Yehuda Halevi - Lilienblum streets – where the Company will erect a integrated tower for residential and employment uses; the Di Vinci Towers on Leonardo Di Vinci Street corner of Kaplan, featuring two residential towers; and recently, it has purchased Beit America on Shaul Hamelech Street for NIS 140 million, which it intends to improve by increasing its building rights.   

In addition, through its hotels division, the Company is building a business hotel in its Midtown Project, which it constructed and occupied in the past year. The hotel will feature 120 rooms and is scheduled to open during the first quarter of 2020.

Canada Israel will be represented by attorneys, Shmuel Fleger and Inbal Perchik of Goldfarb Zeligman and Co., and the sellers will be represented by attorneys Zvi Chowers and Rola Dela Movariki of Glusman Chowers Lahat and Co. and attorney Dor Shaham of Hamburger Evron and Co.

The Company commented:  “The present purchase is in keeping with the Company’s strategy to create significant projects and to expand its activity both in the field of development and the field of income-producing real estate and hotels in high-demand areas.”