Azrieli Group has concluded another major purchase of land in the vicinity of its flagship Azrieli Center in Tel Aviv's northern business district for NIS 374 million: The 8-dunam (2-acre) headquarters of the Yedioth Ahronoth newspaper group on the east side of Menachem Begin Boulevard, adjacent to the Azrieli Center complex.
The Azrieli Group made a NIS 90 million down payment on the property at the signing of the deal on Wednesday and will pay the NIS 284 million balance when the deed is transferred.
David Azrieli, founder and majority owner of Azrieli Group, plans to build an elliptic shaped skyscraper on the property of 60 stories reaching 255 meters in height. The base of the tower will contain a 10,000 square meter mall which will essentially serve as an extension of the Azrieli Center mall, with the upper floors devoted equally to residential and office use. Plans also call for 1,000 underground parking spaces on five levels.
The new expansion to the Azrieli Center will provide a solution to the growing demand for commercial and office space at the existing complex, which for years has enjoyed full occupancy.
TheMarker has learned that Yedioth Ahronoth intends to move all its activities, including its Calcalist financial daily and Ynet website, to new offices in Rishon Letzion where its printing presses are already located. The move to a single building in the outskirts of Tel Aviv is seen as a money-saving measure, along with the expected consolidation of news desks and layoffs.
In the past two years Azrieli Group has been gobbling up properties along Menachem Begin Boulevard, spending NIS 1.136 billion overall and with plans for four megaprojects totaling about NIS 4.5 billion in investment.