Bank Leumi (TASE:LUMI) is offering its Tel Aviv management building for sale, including an office tower built in 2003 and the adjoining historic Beit Mani - a protected building. The buildings at 30-36 Yehuda Halevi Street are for sale after Leumi is expected to complete the moved of its headquarters to Lod in two years. Real estate market appraisers and sources estimate that the buildings are worth NIS 350 million but admit that in the current market the price could be even higher.
The building includes 13,000 square meters of office space in the heart of Tel Aviv's city center. The area is extremely popular among tech companies and little new construction is planned. The inclusion of the building for preservation in the deal makes the sale especially interesting.
Leumi built the office tower between 1999 and 2003 at an investment of NIS 127 million on land that it already owned. The buildings 13 floors contain the offices of the bank's senior management, the legal department, the financial division and more.
Beit Mani was built between 1910 and 1915 and renovated by the bank 20 years ago. Inside are the offices of senior executives and meeting rooms.
"Sources" have told "Globes" that the master plan allows part of the complex to be converted to commercial space. The building overlooks the new railway park and the light rail Red line, which is due to begin operating later this year. The building offers direct access to the park.
The building also has 200 parking spaces in four underground floors.
Leumi has sold much of its real estate assets in the surrounding streets in recent years. In 2017 the bank sold its 6,800 square meters Tel Aviv central branch at the junction of Herzl and Yehuda Halevi Streets to Canada Israel and Arko for NIS 277 million. Two years ago Arko sold its stake in the building to Canada Israel in a deal reflecting NIS 440 million for the asset. The property cannot be compared to the building Leumi is selling now because there were rights to build a 40-floor tower on the site.
Last year Leumi sold a 1,640 square meter building at 31 Lilienblum Street to Sela Construction for NIS 66 million plus VAT.
Published by Globes, Israel business news - en.globes.co.il - on February 6, 2022.
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