Annual rent is estimated at $3 million, generating a 9.5% return for buyers Clal Insurance and Israel Properties.
IDB Holding Corp. (TASE: IDBH) subsidiary Ispro - The Israel Properties Rental Corp. Ltd. (TASE: IPRO) announced last Wednesday that, jointly with Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), it would buy a power center in Ness Ziona for $32 million.
Net annual rent from the center is estimated at $3 million, generating an estimated 9.5% return.
Dizengoff Trading owns the 24,000 power center, which has been operating successfully for almost 10 years. Rent in the fully occupied center averages $12 per sq.m. per month.
The deal is the Clal Insurance’s second recent large transaction. A week ago, the company signed a contract to buy the Ackerstein Tower, also known as Building C, in Herzliya Pituah from Ackerstein Industries for $31 million.
Published by Globes [online] - www.globes.co.il - on December 25, 2005