Mizrahi Tefahot Bank (TASE:MZTF) has agreed to sell 23 properties to Mivne Real Estate K.D. Ltd. (TASE: MVNE) for NIS 530 million. If the deal is completed, Mizrahi Tefahot will recoprd a NIS 200 million capital gain.
The properties are suitable for office and commercial space as well as housing. Most of the assets were formerly branches of Union Bank, with which Mizrahi Tefahot merged last year and has been looking to sell off. Among the properties are Union Bank's former head offices on Ahuzat Bayit Street in Tel Aviv and Union Bank's main Tel Aviv branch in Ahad Ha'Am Street as well as Mizrahi Tefahot's former technology center in Tel Aviv's Lincoln Street.
Mivne will pay 10% of the amount agreed when the final agreement is signed and the 90% balance ahead of the January 2022 date for handing over the properties. Mivne said that the first 10% payment will come from the company's existing equity.
Mizrahi Tefahot and Mivne also agreed that the bank will continue to use and lease some of the properties for NIS 25 million annually.
Full disclosure: The Bar-On family, part of the controlling owners in Globes, have a small stake in publicly-traded Mivne Real Estate
Published by Globes, Israel business news - en.globes.co.il - on September 14, 2021
Copyright of Globes Publisher Itonut (1983) Ltd. 2021