For sale: Tel Aviv's most expensive flat, a steal at $34 million

The elite Tel Aviv real estate market is sailing to unrecognizable heights these days, at least as far as contractors can see.

The Gindi Group, which holds construction of the G Tower in central Tel Aviv, recently announced that it would be selling one of its apartments for $34 million - the highest-priced flat in the city.

The cost is nearly twice that of Israel's currently highest-priced apartment, purchased by Idan Ofer on Rothschild Boulevard 1 for $17.1 million.
The question now is whether anybody will actually be willing to pay the demanded amount.

The apartment in question is a triplex flat combining a former duplex and penthouse apartment on the 24th, 25th and 26th floors, just under the triplex purchased more than a year ago by the holder of controlling interest for Bank Hapoalim, Shari Arison, for $13 million.

This new triplex sits at 1,500 square meters and has a 360 degree panoramic view of the city. The demanded price includes a value of more than $22,000 per square meter.

On the one hand, the price indicates that the sellers are sure someone will pay up. But on the other hand, the whole matter seems an issue of compulsion, or just a gimmick that will not be able to yield any kind of real deal.

"After all the noise, Gindi admits that they have not managed to sell the two apartments and are creating a buzz around the possibility of connecting them. That's it," said one real estate market man in Tel Aviv.

Indeed, in the eyes of most real estate agents in Tel Aviv, the rising prices are not reasonable. A few months ago, the Oranim Group - which owns the Sea One Project on Hayarkon Street - decided to abandon their plans of selling a penthouse facing the sea for $25 million, after they were unable to sell it after a few years of trying.

If Ofer's $17.1 million apartment ranks the measure of prestigious apartments in Tel Aviv, then real estate agents say there is no justification for doubling the price

Nitsba to sell 6 French properties

The properties are leased to France Telecom.

Nitsba Holdings Ltd. (TASE: NTBA) has signed an memorandum of understanding (MOU) to sell six properties in France for €61.5 million. The properties are all leased to France Telecom through 2011, and generate €5.1 million in annual rent.
Nitsba has booked the properties at a value of €53.4 million on the basis of a fair value assessment.