The Adsha Developing Investments & Promotion company, controlled by Alfred Akirov, yesterday (Wednesday) afternoon purchased the office building of the United Kibbutz Movement at 27 Suttin St., Tel-Aviv. Adsha will pay $12.1 million for the building in the biggest commercial real estate transaction of recent times.
The building, which in the past housed the UKM’s central institutions, was sold by “Neot Tel-Aviv Dalet”, which is under control of the UKM’s Bonds Trust. The proceeds of the sales are designated for repayment of debts to UKM debenture-holders.
The building consists of 5,010 sq.m., so that the deal secured a price of $2,410 per sq.m. This is considered high for a relatively old building, not in the town’s principal office area. The deal also includes a 1,000 sq.m. basement, and 39 parking places.
At the beginning of 1996, the UKM issued a tender for the sale of UKM House, together with another office building at 10 Dubnov St., Tel-Aviv. UKM at first demanded a total of $26 million for the two buildings, of which $15.5 million related to the building on Suttin St. At those prices, nobody offered. UKM next tried to sell the Suttin St. Building under a separate tender, at $14 million asking price, but again, there were no bids.