One of the three consortia in the Tel Aviv wholesale market tender has withdrawn less than a week from the scheduled announcement of the winner. The consortium comprising Habas HZ Investments Ltd. (TASE: HABS), British-Israel Investments Ltd. (TASE: BRTS), Tidhar Ltd., Rogovin Ltd., and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) announced its withdrawal on Thursday.
The consortium apparently withdrew because the sellers, including the Tel Aviv Municipality and Tnuva Food Industries Ltd., want to sell only the 12-storey residential high-rises in the first stage of the tender, even though the bids are for the entire 55 dunam (16 acre) site in central Tel Aviv. In addition, there are wide differences between the bids and the asking price for the site.
Sources inform ''Globes'' that Migdal is in talks with another consortium in the tender, Moshe and Igal Gindi Ltd. and Gindi Investments Ltd. Migdal is a partner of Moshe and Igal Gindi in Rishon LeZion's Kanyon Hazahav Mall, after buying a 75% stake at a value of NIS 1.25 billion in 2008.
The third consortium in the tender is Shikun u'Binui Holdings Ltd. (TASE: SKBN), Amot Investments Ltd. (TASE:AMOT), Eurocom Global Real Estate Ltd. (TASE: EGRE), Aviv & Co., and Canada-Israel Development Corporation.
The Tel Aviv Municipality owns 25% of the Tel Aviv wholesale market, Tnuva owns 60%, Shraga Biran owns 6%, and Wholesale Market Company (wholesalers who used to operate there) own the rest. The site, between Carlebach Street, Hahashmonaim Street, and Menachem Begin Road, is zoned for 1,800 luxury apartments in four 40-storey towers and another five 12-storey buildings, around a large park, as well 30,000 square meters of commercial space, 25,000 square meters of office space, and public buildings.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2009
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