Discount Bank is negotiating a deal whereby it will purchase from Africa Israel and Migdal the Africa Israel building currently under construction on Herzl Street corner of Ahad Ha’am Street, Tel-Aviv. If the deal is concluded, Discount Bank will pay some $40 million for the building, to which it will relocated its central management.
The Africa Israel house consists of 27 storeys and has 12,000 sq.m. of office space. There will also be a commercial floor and a large underground parking lot.
The building is in the shell stage, and is due to be completed in about one year’s time. It is estimated that, if concluded, the deal will be based on about $2,800 per sq.m. for offices, and plus an additional payment for the commercial storey and the parking lot.
Africa Israel owns 67% of the project. Zozelet, the real estate company of the Migdal insurance group, owns 33% of the project. Africa Israel previously planned to transfer its central management to the top storeys of the tower, but the current owner, Lev Levayev, cancelled the plan, transferred the management to Or Yehuda, and announced that the entire building would be offered for sale or rental.
For several decades, Discount Bank’s central management has occupied a five-storey, 5,000 sq.m. building at 27-31 Yehuda Halevy Street, Tel-Aviv. For want of space, many the bank’s departments are held under freehold or leasehold, in offices on Yehuda Halevy, Lilienblum and Herzl Streets. The purchase of the Africa Israel house will enable all departments to be brought under one roof. The present management building will evidently be put up for sale.
The Discount Bank spokesperson commented that the bank was not in the habit of giving out information on transactions in the negotiation stage. The Africa Israel spokesperson confirmed to "Globes" that negotiations were in progress for the sale of the building to Discount Bank, adding that other parties, too, were making enquiries. A senior source in Migdal told "Globes" that negotiations were in progress in Discount Bank, and that the matter was being handled by Africa Israel personnel.
Published by Israel's Business Arena August 1, 1999