Business & Economics

Clal Insurance teams with Allied on new Tel Aviv tower

Clal Insurance (TASE: CLIS) has reported that it is joining Allied Real Estate in the purchase of a lot at 15 Hagra Street in Tel Aviv, in which the Grapholit printing house, controlled by Oded Mozes, operated for years. Clal Insurance will invest NIS 150 million in the deal, including part of the cost of the land for construction of an office tower and part of the construction cost. Two months ago, Allied Real Estate, bought the land for NIS 191 million.

According to an urban building plan drawn up by the Tel Aviv municipality, the 4.5 dunam (1.125-acre) lot will be part of the Hagra-Harakevet site close to Menachem Begin Road and the intersection of Bnei Brak Street, Harakevet Street, Hagra Street, and Salomon Street. A total of five buildings are planned for the site for residences, commerce, business, and public uses. Two towers of up to 34-floors will be built on the purchased lot, called Bnei Brak after the street name: one residential and one for offices.

Clal Insurance will be partner only in the business tower, which Allied Real Estate and Clal Insurance will have equal rights. Construction rights in the business tower total 28,000 square meters of office and business space and 900 square meters of commercial space. Allied Real Estate will build and manage the project, and also holds all of the rights in the residential tower.

The current deal follows a string of recent real estate deals by Clal Insurance, among them the purchase of an industrial building from Fortissimo Capital used by Tuttnauer in the Hartuv industrial zone, a sale leaseback deal, and a NIS 350 million investment in a residential, office, and commercial project on the Korazin site in Givayatim. Zemach Hammerman and Orcom Strategies are also partners in this project.

Yossi Dori, executive VP and manager of the investments division at Clal Insurance, said, “We welcome the partnership with Allied Real Estate in this important deal. It is another real estate deal in a bustling commercial area in the heart of Tel Aviv that serves as both a business and residential area. The group’s investment strategy focuses, among other things, on accumulating and buying high-quality properties that generate cash flow. We expect our participation in this real estate deal, which has great potential for a return, to generate a return appropriate for the risk in the members and nostro portfolios.”

Adv. Anat Sterenlib-Molkho, Adv. Jonathan Tessone, and Adv. Michael Yavin from the Amit, Pollak, Matalon Co. law firm represented Clal Insurance in the deal. Adv. Ohad Zalevsky, Adv. Elad Cohen, and Adv. Moran Baruch from the Zalevsky Co. law firm represented Allied Real Estate.

Published by Globes, Israel business news – en.globes.co.il – on January 12, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020


Article source: https://www.globes.co.il/en/article-1001314526

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