Clal Insurance and Finance has entered into an agreement with the Hagag Group to purchase 75% of the land on which two commercial centers and residential buildings will be built on Einstein Street in Ramat Aviv, near Tel Aviv University, for NIS 475 million.
Clal joins a purchasing group to develop the project. The investment includes the land purchase and project development costs.
The first project, which will have 4400 square meters of commercial space, will be built at the corner of Einstein and Levi Eshkol streets. Also, three apartment buildings with 215 apartments will be built above the shopping area, yet they aren’t part of this deal.
The second project will be built at the corner of Einstein and 2040 Street and will include 9000 square meters of commercial areas and three buildings with 300 apartments.
As stated, Clal Insurance will hold 75% of the project and the Hagag Group 25%. The commercial areas will be jointly managed by both parties.
Clal Insurance bought 50% of the top nine floors of the Sky Tower in the Hassan Arafa complex from developer Adi Zim this year.
Yossi Dori, Deputy CEO and Director of Clal Insurance's Investment Division said: "The company continues to expand its exposure and investment in the field of commercial and residential real estate in Israel.
"Our extensive experience in the real estate world in Israel and abroad allows us to continue investing in leading real estate projects alongside partners like Hagag. This deal is expected to yield a high return, in a way that will bring significant value to Clal investors.”
Clal was represented in the transaction by lawyers Shlomi Cohen, Itai Itzkovitz and Eyal Lieberman of Gornitzky & Co.
Hagag was represented by lawyers Nadav Abramovich, Adv. Lior Funkelstein and Yinon Hagag from Hagag, Buchnik, Weinstein & Co.