Tel Aviv: Towers to replace Jewish Agency building
World Zionist Organization gets hold of Jewish Agency building near Kirya base, worth more than NIS 50 million, as part of historic agreement for economic separation between two bodies; plans to build commercial center and office buildings on land
The WZO will advance a plan to turn the building into a compound including a commercial center and two office buildings. Yedioth Ahronoth's economic newspaper Calcalist has learned that according to the agreement, the JA will remain in the building.
This was one of the biggest real estate deals signed recently. The WZO received the building as part of a historic agreement for economic separation between the two bodies. In addition, the WZO received shares totaling NIS 170 million (about $43.8 million) in the Otzar Hityashvut Hayehudim company, whose shares are traded at the Tel Aviv Stock Exchange. The company holds about 4.9% of Bank Leumi's shares.
According to estimates, the JA building is worth more than NIS 50 million ($12.9 million). It has seven floors and measures more than 8,000 square meters (9,568 square feet) in size, and is rented to dozens of business bodies.
The JA owns some 500 square meters (half a floor), and will remain in the building according to the agreement.
Before the execution of the agreement, the Jewish Agency has been transferring to an annual budget to the WZO, which stood at $7.3 million in 2008. The agreement is aimed at providing the WZO with economic independence thanks to the assets it received.
In addition, the JA will hand the WZO $4.5 million in 2009 and an additional $4 million between 2010-2013. Should the assets' value rise significantly during the next four years, the Jewish Agency will be entitled to some of the profits.
Former Knesset Member Hagai Meirom (Labor), who serves as treasurer of the WZO and JA, told Calcalist that he planned to turn to other bodies holding nearby properties such as the Kibbutz Movement and Ahuzot Hof in order to advance a comprehensive plan.
The Tel Aviv Municipality said in response that the matter was being looked into.
