Tnuva Selling Iconic Tel Aviv Dairy Site

Raz Smolsky
Shlomit Tzur
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Raz Smolsky
Shlomit Tzur

The Tnuva dairy and fresh-foods cooperative is selling its iconic dairy in Tel Aviv for NIS 565 million. The potential buyers, the Pangaea real estate group and Electra Real Estate, have not yet signed a final agreement.

The option agreement Tnuva signed yesterday is a no-shop accord, which means it can't negotiate with other potential buyers in the month to come.

Now imagine this site in the heart of Tel Aviv, brimming with skyscrapers 45 to 65 stories high.Credit: Ofer Vaknin

The gigantic deal involves 13 dunams between Azrieli Towers and the Arlosoroff train station, in Tel Aviv's main business district. The site is zoned for three skyscrapers of 45 to 65 stories. Two would be office towers and one would be residential, with stores and restaurants on the ground floor, with 2,500 parking places.

In the past there had been an idea to sell the Tnuva site along with an adjacent site belonging to Clalit Health Services. But this deal involves Tnuva alone.

Pangaea controlling shareholder Assaf Tuchmayer says the finances of the deal have been sewn up, including the price. The month the company has to complete the deal will be devoted mainly to planning, he said.

However, in its last mega-deal in Tel Aviv, Tnuva had signed a no-shop agreement to sell the wholesale market area to a group headed by Shari Arison's Housing & Construction. Ultimately it sold the site to another real estate company, Gindi Holdings.

The office towers will be 20 stories taller than Azrieli Towers, Tuchmayer told TheMarker yesterday. According to Pangaea's vision, the residential tower will be connected to the office towers through a mall of 20,000 square meters, which is the same size as the Ramat Aviv mall. The future Tel Aviv light rail system will pass underneath the complex, he added: An exit will be built directly to the complex.

Pangaea and Electra aren't the only ones with eyes on the area north of the Azrieli Towers. The Hagag Brothers real estate group and Or City are both putting together purchasing groups to build residential high-rises nearby. The Kardan group is building joint office-residential high-rises; one is almost complete. And that's just a partial list.

Architect Moshe Tsur says the plan is an important one for Tel Aviv, not only because of the added building rights but because it combines office and residential uses, assuring the area will be lively.

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