The Mishab construction company has been negotiating with four parties, including the British Embassy, to sell Kastel House, at 166 Ibn Gvirol Street, Tel-Aviv, for $12 million. The other potential purchasers include a large law firm and a large company. $3 million is now being invested by Mishab to renovate the building thoroughly.
For many years the British embassy has been situated in a 3,000 sq.m. building on Hayarkon Street, opposite the Tel-Aviv Hilton hotel. The embassy has been searching for a larger building to serve its needs.
Mishab bought the building from a company controlled by the National Religious Party, in a tender two years ago, for $5.25 million. The building has a commercial level plus four floors of offices, for a total area of 3,200 sq.m. While doing the renovations Mishab will add another, fifth, storey, excavate underground parking for 24 places, and surface the building with an aluminum screen. Mizrahi Bank, which is a protected tenant of 315 sq.m. on the ground floor, will remain in the building.
When renovations are completed the building will comprise 4,000 sq.m., excluding Bank Mizrahi. Mishab believe the building to be worth $3,000 per sq.m. This price seems high in present market conditions, but Mishab say that an independent office building of 4,000 sq.m. cannot be found in Tel-Aviv today.
Published by Israel's Business Arena April 5, 1998