A group of businesspeople, some holding senior positions in public companies, has purchased a building for investment in the heart of Tel Aviv for NIS 50 million (about $12.3 million).
The building was purchased from the Bauhaus company, which is controlled by Amos Weinberg and Yaakov Kotler. It is slated for renovation and its urban building scheme allows an addition of three floors.
The building's price was set at NIS 23 million ($5.6 million), with Bauhaus promising to perform the renovation and construction additions for a further NIS 27 million ($6.6 million).
The group was initiated by Attorney Ehud Porat of the Ehud Porat and Co. firm, which specializes in organizing buyers' groups for real estate.
The existing building has three stories and includes 14 apartments, each measuring 80 square meters (861 square feet) in size. The plan is to renovate the existing building and add three floors.
The 14 existing flats will be reduced to 10 over a larger area, and will be joined by 12 new apartments, each measuring 80 square meters.
In addition, several luxurious apartments are planned: A garden apartment of 180 square meters (1,937 square feet), including a garden of 150 square meters (1,614 square feet), as well as another penthouse which will be built on 240 square meters (2,583 square feet), including six rooms. In total, the building will consist of 22 apartments.
According to Porat, "Most of the buildings were sold for NIS 20,000 ($4,739) per square meter. The price of a three-room apartment stands at NIS 1.5 million ($355,452), and the expected profit for each buyer from this deal is estimated at about 20%. The expected return from renting the apartments is estimated at 6% a year."
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