Hapoalim buys Vitania tower for new head office

Vitania Tower Tel Aviv Photo: PR
Vitania Tower Tel Aviv Photo: PR

Bank Hapoalim has signed a binding agreement to buy the 40-floior tower and adjacent 5-floor building by Tel Aviv's La Guardia Interchange.

Israeli real estate developer Vitania (TASE: VTNA) today notified the Tel Aviv Stock Exchange (TASE) that it had signed a binding agreement with Bank Hapoalim (TASE: POLI) to sell it a complete office tower in the Vitania Tel Aviv project by the La Guardia Interchange, which it is currently building and owns jointly with Delek Automotive Systems (TASE: DLEA).

Bank Hapoalim will buy from the partnership 60,000 square meters in stage 3 of the project, consisting of an office tower with 40 floors above ground level, and a five-floor connected building. The tower is being bought as a shell. It has 1,147 parking places. The bank will pay NIS 970 million. The handover of the tower is scheduled for 52 months from the date of the agreement. The partnership can defer handover by 90 days. Bank Hapoalim will thus move to the new buildings in four-and-a-half years' time. They will serve as the bank's new headquarters, and all head office functions will move to them.

The building bought by Bank Hapoalim is part of larger complex that was approved by the District Planning Commission in 2018 as Urban Building Plan 4086. The project consists of two 40-floor towers along the Ayalon Highway and three similar towers on Haharash Street. Six-floor buildings will be constructed between the towers. Altogether, the project contains 240,000 square meters of commercial and hotel space, 200 housing units, and 7,000 meters of public buildings. The project sits on 23.5 dunams (5.9 acres). Most of the land is owned by Vitania and Delek Automotive Systems, while the southern third is owned by Adv. Alon Hoter Ishay.

Published by Globes, Israel business news - en.globes.co.il - on June 21, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Vitania Tower Tel Aviv Photo: PR
Vitania Tower Tel Aviv Photo: PR
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