Meshulam Levinstein Contracting and Engineering Ltd. (TASE:LEVI) subsidiary Aquarius Property Enterprises and Development Ltd. has bought two 1,000-square meter floors in the Levinstein Tower in Tel Aviv from Gmul Investment Co. Ltd. (TASE: GMUL) unit Gmul Residential Real Estate Ltd. (TASE:GMND.B1) for NIS 25.5 million. In December, "Globes" reported that Gmul Real Estate had put the 22nd and 23rd floors in the 33-storey Levinstein Tower up for sale.
Levinstein stated that Aquarius will finance most of the purchase with a bank loan. Aquarius will lease back 614 square meters to Gmul Real Estate in a two-year lease, paid in advance for the full period. The rest of the space is leased to other tenants. Levinstein now owns 49% of the building.
Levinstein CEO Shaul Lotan said, "Levinstein is pleased to increase its portfolio of income-producing real estate, especially office space in the Levinstein Tower, which is retaining its high prices relative to the market, even now. It is still a sought-after location for many companies seeking office space in it."
The auditors for Gmul Investments, controlled by Leon Recanati, published a going concern warning for the company in early December. He later told bondholders that his investment in Gmul was the worst deal of his life.
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2009
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