Leumi lends Taic NIS 1.2b for David Promenade project

Bank Leumi recently signed an agreement with hotelier Henry Taic for the financing of the David Promenade Towers project that Taic is constructing opposite the Opera Tower, close to Tel Aviv's beachfront.

Under the agreement, Bank Leumi will finance the project to the tune of NIS 1.2 billion, covering the cost of construction and the guarantees to buyers of apartments in it. Taic and Bank Leumi CEO Rakefet Russak-Aminoach celebrated the signing of the agreement with a cake in the shape of the project.

White City Residence to add another 8 floors?

Just months away from the scheduled delivery of White City Residence to its future residents, Zemach Hammerman and Eurocom just received approval from the Planning Commission of Tel Aviv for an additional 8 floors that would bring the tower to a total of 38 floors and 157 appartements.

In addition, the Commission revoked the duties imposed by the municipality to the promoters, such as the road widening, the construction of a kindergarten and a synagogue, as well as the relocation of the Orthodox girls' school Ohel Jakob to Bnei Brak.

Originally the tower was supposed to be a 30-story building and the developers seeked to increase it to 41 floors. They were then given the option to increase the tower to 38 floors in exchange for public duties. But that option was subsequently cancelled following opposition from Neve Tzedek residents.

The developer is now looking at its options as adding the additional floors after the penthouses have already been built will add further costs and delays to the delivery along with significant penalties.

UPDATE: It just took a few days for the Neve Tzedek residents association to appeal the court decision. This drama is therefore far from over. To be continued...

Source The Maker

French hotel family buys Sea One tower

Electra Real Estate Ltd. and Oranim Ltd. have closed the sale of the Sea One high-rise project on Tel Aviv's seafront to the French Amouyal family, which operates hotels including the Meridien in Eilat, for NIS 370 million.

They paid the buyer NIS 16 million in compensation for transaction costs, which Electra Real Estate will report in its financial statement. The two companies owned the project on Hayarkon Street in equal shares. Electra Real Estate will report NIS 98 million in cash flow from the sale, NIS 88 million of which it will use to repay the seller's loan it gave the buyer.

Foreign Jews buying in Israel to escape the taxman

The phenomenon of foreign residents buying homes in Israel, which has become increasingly prevalent in recent years, is not only because of Israel’s attractive real estate market. Another reason is new limitations on European and American bank accounts and the need to empty them so as to avoid pay taxes and fines on previously undeclared funds. For some Europeans, a crackdown in the European banking sector on undeclared assets is driving them to move their money, and sometimes the destination is Israel, according to tax lawyer Leor Nouman. In addition, American tax authorities are pursuing undeclared assets in accounts held by Americans outside the United States. Over the past two years, Israeli and European banks have pressured their American clients to either withdraw their money from banks or provide confirmation from the U.S. Internal Revenue Service that the funds on hand have been declared to the tax authorities.

This is all the result of American legislation, the Foreign Account Tax Compliance Act, which requires banks outside the U.S. to report accounts held by American citizens. Banks that fail to cooperate are subject to harsh sanctions. In Israel, companion legal provisions requiring banks to comply will take effect next month. An estimated 300,000 to 350,000 people in Israel have dual U.S. and Israeli citizenship. In addition to those who openly declare their overseas accounts to the American authorities, some, it is thought, have either transferred the funds held here into the names of non-American relatives or have withdrawn the funds and bought real estate in Israel.

Former Hapoalim chairman sold flat in 1 Rotschild

Shlomo Nehama has sold a 700-square meter apartment covering the entire 16th floor in the 1 Rothschild Boulevard tower in Tel Aviv to a foreign resident for NIS 45 million. The former Bank Hapoalim chairman owns another apartment on half of the building's 15th floor, where he reportedly intends to reside.

According to sources, at least five apartments in the project have been sold in the past three months by owners who had bought them on plan from the developer Habas HZ Investments Ltd in 2008-10. The sellers have made handsome profits.

Most of the other sales were of 300-square meter apartments for NIS 20-27 million, depending on the floor, and whether the apartment was sold in shell or completed condition. The average price is NIS 84,000 per square meter (ie. $24,000).

Israel Tax Authority investigating foreign landlords

In August 2013, the Israel Tax Authority (ITA) launched a targeted enforcement operation to detect tax evaders among the owners of luxury apartments in Tel Aviv. This operation resulted in the findings of hundreds of thousands of shekels of unreported annual income. Many of these apartment owners were foreign residents who rented out their apartments without reporting the rental income to the ITA.

Due to the success of the initial operation, the ITA decided to tighten the enforcement and in the middle of November launched a further raid, this time, over 200 luxury apartments in Ashdod owned mostly by foreign residents. The ITA teams requested from the tenants to produce the rental agreements and information regarding the rental payments. About 30 tenants immediately cooperated and provided the requested information. Another 80 tenants were required to produce the information in the following days together with the remaining tenants that were not present during the time of the raid. The ITA announced that foreign residents who are leasing apartments and not reporting the rental income will be summoned via their representatives, for further investigation.

Tel Aviv beachfront flat prices soar to new heights

In the aftermath of the 2008 financial crisis, an oft-heard claim was that while some of the mega-wealthy were hurt by the crisis, many came out of it financially stronger. One place to find backing for this claim is to look at what is possibly the most expensive strip of real estate in Israel - the kilometer-long stretch of central Tel Aviv's Mediterranean shoreline, spanning from the Dan Hotel near Tel Aviv Marina to the shell of the Dolphinarium discotheque in the south. By this measure, the rich are certainly richer. The total value of apartment sales in the area jumped to NIS 444 million in 2012, from NIS 270 million in 2010. In the first half of this year, the volume reached NIS 340 million, and real estate experts say it will reach between NIS 500 million to 600 million for all of 2014.

The main reason behind the increased volume is that more luxury apartments have come online in recent years, says Noam Dzialdow, CEO of the luxury realtor Neot Shiran. “Along the Tel Aviv shoreline, the market is almost always influenced by supply and not demand. In a market so small in terms of supply, everything that goes on sale is sold,” he says. Traditionally, the number of new developments that can be built has been constrained. The general public - the ones who don’t aspire to a seaside penthouse but simply a day at the beach - fight to ensure access and unobstructed views. Most of the original construction on streets closest to the beach are low-rise buildings, built on small parcels of land. Developers typically have to buy out multiple property owners to amass enough land to build a new project, a process that can take so many years that the building never gets off the ground.

New Sea One's Royal Beach ups the ante in Tel Aviv

The Royal Beach Tel Aviv, a new hotel in Tel Aviv, opened its doors in May. Located on the beachfront by the famous promenade, it is just a leisurely stroll from the city’s major entertainment and dining destinations. But if you are staying at the Royal Beach, you will no doubt be inclined to remain in the vicinity of this luxury hotel. Part of the prestigious Isrotel Exclusive Collection, which includes the Royal Beach Eilat, the Carmel Forest Spa Resort and the Beresheet desert resort, this new hotel offers a wide range of rooms and services for different needs. The various rooms and suites types are tailored to suit the diverse needs and desires of guests who visit the big city, be they businesspeople, honeymooners or vacationing families.

None of the rooms are small, ranging from 28 to 95 square meters. The spacious rooms and suites all overlook the sea, and most have a balcony with a panoramic sea view. Guests are invited to sink into the comfortable balcony furniture and enjoy the gentle breeze and the captivating golden sunsets every evening. The hotel’s 230 rooms and suites are the creation of master international hotel designer Harald Klein, who has left his distinctive mark on urban hotels worldwide. Klein’s avant-garde hotel concepts draw together the delights and comforts of contemporary urban design, cutting-edge technologies and the desire to provide guests with warm hospitality and the experience of sheer luxury and relaxation. In a Klein design, even the smallest details, such as light fixtures, closets, desks and TV, are given full consideration, which makes all the difference.

New project by Tel Aviv's Dolphinarium approved

The Tel Aviv Regional Planning and Building Commission has approved a plan to build two 28-floor residential and hotel high-rises and six 9 stories buildings along Herbert Samuel Street opposite the beachfront Dolphinarium, which will be demolished. Giora Rothman Architects designed the new project which replaces the previous design that had just one single 40 stories skyscraper.

The plan calls for converting the Dolphinarium into open public space, completing the seafront promenade between central Tel Aviv and Jaffa along the Charles Clore Park, and granting building rights on the eastern side of Herbert Samuel Street. The project includes 50,000 square meters of built-up space, half for 250 apartments and half for 450 hotel rooms. The hotel project includes a 28-floor high-rise and several seven-floor buildings with a commercial ground floor. The project's residential space calls for a 28-floor high-rise and several nine-floor buildings with a commercial ground floor. The plan also states that 20% of the apartments will be up to 75 square meters in size, and that half of the ground-floor facades will be commercial space.

White City Residence almost sold out

Sales in White City Residence situated north of Neve Tzedek have now reached NIS 770 million. That represents 137 flats or 84% of the total. Ever since construction started, the project run by ZMH Hammerman, Eurocom and the Bruner family has been at the center of a public debate about high-rise construction in the neighborhood.

A petition filed two years ago by the residents of Neve Tzedek delayed the grant of additional building rights for eight stories and in January the District Court dismissed the addition altogether. According to Ran Ben Avraham, vice president of marketing at ZMH Hammerman, the developers decided not to continue the fight. "Most of the project is sold and we have to eventually deliver the apartments to their owners" Ben Avraham said.

80% of Israelis to live in Tel Aviv Area by 2025

Israelis are moving to the country's central region in such large numbers that experts predict 80% of Israel's population will be living in the greater Tel Aviv area by 2025. The past decade saw continuous movement from the country's periphery to the center, according to statistics from the Bank of Israel and Central Bureau of Statistics. The result is that the southern and northern districts have suffered negative migration over the years, while the central district has enjoyed positive migration at their expense. "The Israeli nation is congregating on the central plain, in the greater metropolitan Tel Aviv area," says Arnon Soffer, professor emeritus of geography and environmental sciences at the University of Haifa. "There are many figures attesting to Jews leaving the Galilee. All the development towns in the periphery are emptying." "Currently 30% of Israelis live in the periphery, and it is estimated that by 2025 80% of all Israelis will be living in greater Tel Aviv, in the region bounded by Hadera, Modi'in, and Gedera," Soffer continues. "The watershed lines of the periphery are now moving further afield to Kiryat Gat and Zichron Yaakov because of the highways."

17 Arlozorov wants to set new sales record

Tel Aviv's luxury real estate market has been booming for quite some time, with the past 3 years seeing records broken each quarter for each new project being built up into the sky. A new record is now attempted with the 850 square meter penthouse in the new Arlozorov 17 tower hitting the market for 200 million NIS ($53m), i.e at a price of just about $60,000 per square meter. Time will tell however if Dan Group, the developer, can get this price.

Arlozorov 17, which will be located on Arlozorov Street in the Old North neighborhood of Tel Aviv between Ben Yehuda and Dizengoff Streets, is one of a number of luxury high-rise projects currently under construction. Dan Group said that the new luxury residential tower built on top of the former Dan Garages is now expected to be completed by 2015. The tower will include a spa and an olympic-length swimming pool.

Latest transactions in White City Residence

Prices continue to edge up in White City Residence with the price per square meter now reaching $18,000 for higher floors.

Those changes are not isolated to that building and are worrying the Bank of Israel that has just decided to further tighten rules for mortgages. Going forward, and in order to prevent a real estate bubble from developing, borrowing will be capped as follows:

• 75% LTV for the first purchase
• 70% LTV when purchasing of a bigger property and selling the first one
• 50% LTV for the purchase a second property within the same family

Sea One vacation flat sold for $4.8m

A 190 sqm flat located on the 19th floor of the 23 stories Sea One sold recently for NIS 18.5 million, i.e. $4.8m. The fat is facing the sea and has two balconies totaling ​​25 square meters as well as two underground parking spots.

The Sea One is located near the shore of Tel Aviv, on a plot of four acres, between Hayarkon and Herbert Samuel. The building which is due to open its doors this spring will also be the home of a luxury hotel managed by Isrotel under the Royal Beach brand, a shopping area, a pool overlooking the sea and a public parking lot. The tower had made the news in 2009 when Russian oligarch Valery Kogan bought the penthouse for 110 million ($28 million) -- the most expensive flat ever sold in Israel at that time (the record has since been broken by Eyal Ofer).

Construction to finally start at David Promenade

Henry Taic has begun construction of the David Promenade Residences project on Tel Aviv's seafront, ten years after buying the land and years after Taic announced the project. The two building project is being built on an eight-dunam (two-acre) lot between Herbert Samuel Street, Hayarkon Street and Trumpeldor Street, right next to the Opera tower. Each building will have 26 floors; one building will have 60 apartments, and the other will be a hotel managed by Swiss chain Kempinski AG.

Royal Beach Hotel to finally open in March 2013

The Isrotel group announced today that its new Royal Beach luxury hotel located within the Sea One has started accepting bookings from May 1st onward. Prices start at $340 per room, breakfast included. The official opening is March 1st. The new hotel boasts 230 rooms and suites across the beach of Tel Aviv and was designed by German interior designer Harald Klein, who is a leading interior architect and who has extensive experience in designing some of the best hotels in the world. With 23 floors, the hotel will offer its hosts spacious rooms of various types, most of which with sea view, modern communication services, gourmet kosher food, an innovative bar, a large swimming pool overlooking the sea, a state of the art spa and a business lounge.

"I believe the new hotel will be a leader in Tel Aviv. I have no doubt that once opened, the values that will define the Royal Beach Hotel in Tel Aviv will be: quality, excellence and luxury" said Lior Raviv, the CEO of Isrotel.

Royal Beach Hotel Tel Aviv will part of the growing luxury segment of the Istrotel group that includes such hotels as Royal Beach Hotel Eilat, the Carmel Forest and the Genesis Hotel in Mitzpe Ramon.

Source Megafon

Meier on Rothschild reaches 12th floor

Meier on Rothschild Tower which is being built on an area of 3.57 acre on the corner of Rothschild Boulevard and Allenby Street has now reached the 12th floor. Apart for the tower, the project also includes retail space.

The tower will include 37 floors built over 6 floors of parking space. On top of the shopping centre that will total 2900 square meters will be a private pool, a SPA and a courtyard. Building was originally approved for 27 stories, but the developer successfully managed to obtain additional building rights for an extra 10 residential floors making the tower 158 meters high from street level.

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New urban master plan for Tel Aviv approved

The new urban master plan for Tel Aviv-Jaffa was approved earlier this month by the city’s local planning council by a 16-10 vote. The plan lays out, for the first time, what developers can build in the city, where, and how high. It allows for extensive construction of hi-rises and office buildings over the next couple of decades, which will ensure the city a solid tax base in the future.

Many have complained that very little was done to address public transportation issues beyond the existing light rail project and that affordable housing had just not been taken seriously by the city planners. Still any long term vision is better than no vision at all.

The master plan will now go to the district planning committee, where it is expected to undergo further changes. By law, it will then be deposited for formal objections by the public for a period of 60 days, before eventually being approved by the Interior Minister.

For more on the project motivations, here is a presentation from the city council made in 2011.

White City website turned into video landing page

The White City Residence project has refreshed their website and turned it into a single flash video landing page. The new video released a few months back is now the only content on the site. The menu is made of bookmarks from the video. And gone are the live webcam links. No description of the project either other than the promotional video. Focus is clearly on collecting lead details for the final sales push.

Go check the new site at www.white-city.net.

A room with a view...

As the White City Residence project continues to rise, and as the developer still awaits for the final authorization to build floors 30 to 37, here are some pictures taken from the 15th floor of the tower and from apartments types A, B and C.

Enjoy the view of Neve Tzedek, Yaffo and the sea!

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