The court approved the sale of the land located between Hayarkon Street and Herbert Samuel after a long dispute among the owners. The Ofer Investments group plans to build a twin tower for the project “Herbert Samuel 10”.
The Tel Aviv District Court approved on Tuesday the sale of a prestigious plot of land on Hayarkon Street in Tel Aviv. Judge Amit Yariv accepted the complaint filed by some of the landowners for the dissolution of a partnership among the owners, who had not reached any agreement for over ten years. On the land, a city construction plan has been approved for the construction of a 15-story residential tower with 70 apartments, covering 10,000 square meters of main and service areas, according to real estate experts, likely to be sold for between 250 and 250 million NIS.
The vacant lands available for construction on Herbert Samuel and Hayarkon streets are considered the most attractive for housing and hotels, with residential apartments reaching the highest prices per square meter in Tel Aviv. Gabi Taman, a Canadian businessman, bought a mini-apartment on the 19th floor from Liora Ofer for 47 million NIS. In 2014, Canadian Jewish entrepreneur Sylvain Adams purchased an apartment on the 20th to 21st floors on a 1,000 square meter plot for 120 million shekels.
The other project is the Sea One project, which also includes the Royal Beach Hotel, established by Electra with Oranim, in which oligarch Valerie Kogan bought a penthouse apartment on the 22nd floor for 110 million NIS in 2009.
The land for which the court ruled, covering 6.4 dunams, is located between Hayarkon Street to the east, Nehemia to the north, Daniel to the south, and Herbert Samuel to the west. In 1997, two plots were approved for the construction of two residential towers. On the adjacent land, Ofer Investments established the prestigious Herbert Samuel 10 project, while construction on the land in question has not yet been carried out due to the large number of private owners who have not yet decided how to realize their rights to the land.
In January 2017, some landowners filed a joint liquidation request, stating that “despite the immediate availability of a project on the land, the plan having been approved to date for over 13 years, the landowners have been unable to realize the development of the land. Due to the multiplicity of heavy burdens and unsuccessful attempts made over the years,” the lawsuit states. “This situation causes serious harm to the plaintiffs and even to the defendants, as well as to their ability to exercise their property rights on the land, and does not update the planning trends in the region as expressed in the plan,” the plaintiffs added.
As noted, Judge Amit Yariv of the Tel Aviv District Court decided to approve the request and determined that the liquidation of the company would be carried out by selling the lot to the highest bidder, or to one of the owners who would purchase the remaining rights, or by an outside buyer. Furthermore, Yariv rejected the request of some landowners that the future buyer should be required to engage with certain rights holders in a combined transaction (provision of construction services), as such an obligation could reduce the appeal of the transaction as a whole. Therefore, Yariv determined that the land should be sold without any obligation, as this did not prevent the land rights holders from entering into a contract with the future buyer.
Businessman Eli Tamir and the companies he leads own nearly half of the rights, but the rest of the land is held by dozens of private owners, some of whom are represented by lawyer Maimon Avitan, who represented the plaintiffs Shlomi Bracha and Doron Rosenblum of Bracha, Rosenblum, Champs.
The price of land in Israel can reach exorbitant prices, its price is fixed in several ways:
- By the price of the land in the sector or street
- The building permit and construction rate
- The demand in the sector
- The rarity of the property
Once, the land was hardly worth anything, the price of even old assembled apartments does not exceed 30% of the total, only the land is prioritized in the price.
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