Half Jubilee Ltd., jointly owned by Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY) and Minrav Holdings Ltd. (TASE:MNRV), have begun marketing 25,000 sq.m. of office space in the Israel Government Complex in Tel Aviv. The complex is across the street from the Azrieli Towers, at the corner of Menachem Begin Rd. and Kaplan St. Office rent in the complex is estimated at $16 per sq.m. per month, and revenue is expected to reach $5 million a year.
The 13 floors of the building that are being offered on the open market are located above the floors occupied by government offices, which are renting space at $15.60 per sq.m. per month in 20-year leases.
The Israel Government Complex in Tel Aviv has 70,000 sq.m. of office space on 36 floors, and 1,000 sq.m. of commercial space on two floors. Half Jubilee has already signed leases with several tenants for the commercial space.
“Globes” recently reported that Half Jubilee was negotiating to sell the entire building for $60 million. The negotiations failed, however, apparently because of the complexity of the deal, and the risks involved. Half Jubilee is now marking the remaining space on the open market. It is possible that buyers, especially investment institutions, will be more interested in the building if it is fully occupied.
The building includes an underground parking garage. The parking garage currently has 350 spaces built in accordance with a standard that took into account future mass transit systems, including the Tel Aviv light railway, which will pass nearby. The offices will receive the public, and traffic in the area is expected to be heavy.
Half Jubilee said it would demolish the Israel Air Force building adjacent to the Government Complex, where it will build 1,150 underground parking places, which will be added to those in the Government Complex. During the interim, which is expected to last two-three years, the government offices will be authorized to use 600 parking place in adjacent lots.
Published by Globes [online], Israel business news - www.globes.co.il - on September 6, 2005