They are buying 50% of C. Holdings for $14.5 million. Occupancy is low, and the present yield is only 3.5%.
A group of provident and pension funds, headed by Bank Hapoalim, last week took over Si’im Park in Netanya, one of the largest high tech and commercial buildings in Israel, whose area covers 36,000 sq.m. Gmul, owned by Bank Hapoalim, bought 25% of the park from C. Holdings for $7.38 million plus an option to buy an additional 25% for $7.1 million. Sources close to the deal estimate that Gmul will exercise the option.
The remaining 50% of the park is presently owned by Ilot, a subsidiary of Amot Investments.
Bank Hapoalim owns 20% of Amot, Gmul 19% and the Histadrut’s pension funds 60%.
Gmul paid a very low price for 25% of Si’im Park, $820 per sq.m. If it exercises the option, it will pay an ever lower price, $785 per sq.m. The low prices stem from the fact that occupancy at Si’im is low at present, only 35%.
Rentals yield only 3.5% at present. The yield will rise in the future, if and when the provident funds succeed in renting out more space.