Electra Real Estate Ltd. (TASE:ELCRE) will build a hotel and luxury apartment complex on the site of the French Hospital in Jaffa at a total investment of $60 million.
Real estate market sources said the company had acquired 50% of the rights to the land from RFR Israel. The French Hospital building currently on the site is a listed building, originally built in 1879. The site's location is attractive because of the view, and its proximity to the Jaffa city center and Tel Aviv's coastline. The hotel will be managed by international hotel management group Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT).
Electra Real Estate paid NIS 29.4 million for the rights to the 5,000 square meter site, including related expenses. The French Hospital extends over 2,500 square meters. The urban building plan for the site allows for the building of a 15,000 square meter mixed-use hotel and residential property project, and an underground car park.
Electra Real Estate expects to complete the project by 2010. The 130-room luxury hotel will occupy 10,000 square meters of space, with the remaining 5,000 square meters zoned for the construction of luxury apartments.
Published by Globes [online], Israel business news - www.globes-online.com - on August 7, 2008
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