Defense Tech Company Rafael to Leave Tel Aviv Real Estate
The Israel Land Authority and the state-owned defense firm Rafael have reached an agreement that will see the former free up 13 dunams, or 3.2 acres, of property in Tel Aviv.
The prime real estate in the Israeli capital will be used for commercial and residential development, including 900 housing units.
Rafael has been operating in the area since 1994, which is in southeast Tel Aviv, between Moshe Dayan and Hashalom roads.
It lies on the boundary of the Givatayim suburb of Tel Aviv.
The agreement comes when the country is currently busy in relocation of their defense and military operations to the southern Negev region from Tel Aviv as well as other central locations.
Known as Kirya, the headquarters of the Israel Defense Forces (IDF) are still in central Tel Aviv and are located opposite the Azrieli Towers.
But, there is a significant amount of land in Tel Aviv that has been sold for the purpose of private development, which was previously used for state offices and by the IDF.
It should be noted that the construction of the Sarona Market in the capital city had only been made possible when the military footprint had been reduced.
It had been launched in 2014 and was constructed at the corner of Kaplan Street and Namir Road where the German Templar colony had been previously located.
In 2013, the city of Tel Aviv had granted approval to preliminary plans of building a complex with the Israel Land Authority.
The complex included 50-story and 80-story office towers and two residential towers of 45-story each for providing 770 apartments.
Named Keren Hakirya, the complex also included a retail mall of two-stories in central Tel Aviv at the intersection of Shaul Hamelech Boulevard and Menachem Begin Road.
As far as the agreement between the Israel Land Authority and Rafael is concerned, the plans involve 18 buildings that will be conducted and will be around 7 to 25 stories high.
They will also include shops, parks and public spaces. The announcement said that it will take the defense company five years to clear the area.
Yaakov Quint, the director of the Israel Land Authority, said that this deal would allow them to establish an employment area and a residential neighborhood in locations that are in high-demand.
There are already a number of projects ongoing in Tel Aviv and other areas for redeveloping the urban landscape and increasing building density.
There are plans of revamping a main Tel Aviv area i.e. Arlozorov Street, as well as a residential tower in the suburb of Givatayim that will be 64 story high and will have 500 units for long-term rentals.
Apart from that, existing buildings in the city are also being continuously upgraded with the TAMA 38 framework, which involves addition of stories to buildings that already exist, or for demolishing and rebuilding them.
Tel Aviv requires affordable housing and more homes, but it mostly has offerings for the luxury market.