a target=new href=http://www.levinstein.co.il/>Meshulam Levinstein Contracting and Engineering (TASE:LEVI), controlled by CEO Shaul Lotan, is negotiating the sale of office space in the building it is currently constructing for Israel Discount Bank (TASE:DSCT).
The office building is located at the corner of Yehuda HaLevy and Herzl streets in Tel Aviv. Construction is scheduled for completion in June 2006.
Sources inform ''Globes'' that negotiations are being conducted for the sale of 13,000 sq.m. of office space on 13 floors, plus parking, for NIS 200,000. The annual revenue from rental is estimated at $3.15 billion, reflecting a 7% yield on the sale.
In light of the negotiations, Meshulam Levinstein will cancel the planned public offering of the subsidiary that manages the building.
The 13 floors will initially be rented to Discount Bank at $19 per sq.m per month for the first five years, after which the rent will rise to $19.95 per sq.m. per month, index-linked, for the following eight years.
Levinstein will build an additional 17 floors, covering 17,000 sq.m., located above the Discount Bank offices. The price of the additional floors is unrelated to that of the deal now being formulated with Discount Bank.
The total investment in construction is $40 million.
Published by Globes [online], Israel business news - www.globes.co.il - on Sunday, May 15, 2005