Israeli real estate investment trust (REIT) company Sella Capital (TASE: SLARL) continues to expand and has bought office and commercial space in central Israel for NIS 431 million plus VAT. A source close to the deal has told "Globes" that the seller is Israeli billionaire Yitzchak Mirilashvili, who owns a portfolio of holdings in real estate, infrastructures, technology, communications and media including Rothshtein Construction and Assets (TASE: ROTS) and the Channel 14 commercial TV station.
Sella Capital, led by CEO Gadi Elikam and chairman Shmuel Slavin has agreed to buy six floors of offices and 90 underground parking spaces in the North Ha'arba'ah Tower in Tel Aviv as well as 80% of a commercial center in Holon.
For the office space and parking in Tel Aviv, Sella Capital is paying NIS 295 million and for the commercial center in Holon NIS 136 million. The six floors in the North Ha'arba'ah Tower at 28 Ha'arba'ah Street are the 30th-35th floors with office space covering 6,923 square meters, which are fully leased to two tenants - a tech company and capital market company, which have options to extend their leases by 5-10 years for extra rent of 3%-10%.
Sella Capital said that the six office floors generate annual net operating income (NOI) of NIs 16.8 million and that the annual returns are 5.7% with about 10% annual returns on capital.
Published by Globes, Israel business news - en.globes.co.il - on July 17 2022.
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