The Ernst & Young Israel accounting firm will purchase 21 of the 50 floors in the Midtown office high-rise project on Menachem Begin St. in Tel Aviv for NIS 342 million. The floors, which are being sold in shell condition, cover 1,600 sq.m. each - a total of NIS 34,000 sq.m. The deal also includes 475 underground parking places and 584 sq.m. in warehouse space.

Electra, controlled by Gershon Salkind, and Israel Canada, controlled by Barak Rosen and Assaf Tuchmayer, reported today that following the agreement between the parties for the purchase of 16 floors in the tower a year ago, another agreement had recently been signed with Ernst & Young for the sale of five more floors in the high rise. Sources inform "Globes" that a separate entrance in the building will be allocated exclusively for Ernst & Young, and six separate elevators will carry the firm's employees. The sellers also report that 75% of the space in the office project has already been marketed.

Ernst & Young had to terminate its auditing of Israel Canada's financial statements in 2012, due to intervention by the Israel Securities Authority in the transaction. The firm also represents the Electra group.

The Midtown project, currently under construction, contains two 50-storey high rises: one office and one residential building. Three companies are jointly erecting the buildings: Israel Canada (37.5%), Eurocom Canada (37.5%, and Electra (25%). The companies purchased the 14-dunam (3.5-acre) plot from Tnuva Food Industries Ltd. in 2011 for NIS 535 million.

Published by Globes [online], Israel business news - www.globes-online.com - on July 6, 2014

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