Azrieli Group Ltd. (TASE: AZRG) today laid the cornerstone of Israel's biggest office building, in terms of office space - the Sarona Tower, in Tel Aviv's South Kirya compound. The 50-storey building will have 110,000 square meters of office space and include an 11,000-square meter three-floor mall. At 200 meters, it will be Israel's second tallest building, after the Moshe Aviv Tower in Ramat Gan. The tower is located only half a block south of Azrieli Group's flagship Azrieli Center project.
David Azrieli said, "You will undoubtedly ask why now, at a time of recession and uncertainty, I am building a project at an investment of NIS 1.5 billion. People who know the history of my company will see that we're building something for the future, and a good future. We believe that when we will complete this project, the downward cycle will have reversed.
"Remember, almost all my projects since 1983 were begun in hard times and completed in good times. The company's optimism is also reflected in its planning. We'll build another building for the glory of the city and for the glory of the State of Israel. Sarona will become the most beautiful park in Israel."
Construction will take four years, and the building's 1,800-space parking lot will probably be opened before then.
Asked by "Globes" about Antitrust Authority director general David Gilo's decision not to allow Azrieli Group to acquire Netanya's Ir Hayamim Mall, Azrieli replied, "It is Gilo's right to do what he thinks is right. We don’t agree with his decision, but the law is the law, and he decides. This does not prevent us from building, expanding and doing things in the country."
"Globes": Does Israel need more malls?
Azrieli: "Commercial space per capita in Israel lags far behind the US, but that's not the issue. The main question is how malls are good and successful. If there are unsuccessful and poorly planned and badly managed malls, the market will decide whether they fall. Competition isn't between malls, it's between mall companies. We welcome competition."
Azrieli Group's share price rose 1.1% by mid-afternoon to NIS 91.08, giving a market cap of NIS 10.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2012
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