Acro Group has announced the signing of an agreement to sell its full rights (35%) in the boutique hotel THE GEORGE in Tel Aviv for a total of approximately NIS 113 million plus VAT. The buyer is the Electra Group, and the deal also includes transferring Acro’s portion of the existing loan on the property - about NIS 54 million - to the purchaser.
According to the company’s announcement, the deal is expected to yield a pre-tax profit of approximately NIS 25 million. The hotel was established as part of the Alpha Tower at the corner of Allenby and Montefiore streets, a mixed-use project combining residential and hospitality components initiated by the Acro Group.
The hotel in question opened only about two years ago and is now being sold as part of a broader process of business focus. Acro notes that the deal aligns with the company’s strategy of strengthening its cash flow while capitalizing on business opportunities. According to the company, this move further demonstrates its ability “to generate significant value in a short period of time.”
In recent years, Acro Group has established itself as a leading player in Tel Aviv’s new central business district. As part of this, the group initiated several major projects, including: Acro Tower, a 31-story office building that was occupied in 2022; the planned Mazeh Tower, which will include 42 residential floors and is currently being marketed; the Alpha Tower, which includes the hotel sold in the current deal; and other projects set to enter the market soon.
Acro stated: “The company continues to act decisively to realize business opportunities that strengthen its cash flow, while focusing on its development activity and expanding operations in the strategic areas in which it operates. This deal demonstrates the company’s ability to generate significant value in a short time - just two years after the hotel’s opening. It is another step that reinforces Acro’s reputation as a company that not only knows how to plan and build, but also how to close deals on time and focus on its core activities.”
The law firm Ronen Cohen and Tzahi Herman represented Shabat Moshe Assets in the deal. Attorney Omri Shilo from Fischer Behar Chen represented Acro Real Estate, and the Ziv Lev law firm represented Electra.