Mishorim Real Estate Investments announced today that it will sell an entire floor in Migdal Vita in Bnei Brak to an American investor group for approximately NIS 31.4 million, 1.5 times the purchase price approximately seven months ago. Another floor in the building was recently leased to an ultra-Orthodox technology college.
The floor being sold is the first floor above the commercial floor in the tower and its area is about 3,000 square meters. The purchase price was about 7.5 thousand shekels per square meter and now, about seven months after the purchase, the floor is being sold for about 11 thousand shekels per square meter. As part of the agreement, the buyer will deposit 20% (approximately NIS 6.2 million) at the time of signing and will pay the remaining amount (80%) within 90 days from the date of signing the agreement. Completion of the transaction is expected to occur during the second quarter of 2023. The expected free flow to the company after partial repayment of the seller’s loan and deducting transaction expenses and taxes As many as there are, it is expected to amount to about NIS 25 million.
80% of Migdal Vita was bought by Mishorim last July for about NIS 104 million. Migdal Vita is a five-story office building built in 1997, located in Bnei Brak and also contains a commercial ground floor and a parking lot known as the “Beit Vita” parking lot. The company is in the midst of upgrading the building and the commercial complex where: a cafe will be opened on the commercial floor and the boulevard between it and the nearby Concorde Tower is expected to undergo renovation that will include shading, seating areas and plants, the lobby of the building has undergone a massive renovation and seating areas have been purchased for the use of the tenants and the roof of the building will also be renovated and a Rooftop will be launched in the area of 400 square meters for the well-being of the building’s residents.
Amir Tamri, the chairman of the board of directors, said: “Mishor, thanks to its management, knows how to buy and sell even in challenging times, both in Israel and in the markets abroad where the company operates. In a short period of about six months, knowing how to realize part of the property at a significant profit in a challenging period is an achievement of the company’s management, and the board of directors congratulates For that.”
Alon Waxman, CEO of Mishorim, said: “We see the development of the Migdal Vita tower in Bnei Brak and the deal we made shows the attractiveness and high demand of renters and buyers. The developing economic area of Bnei Brak, which includes a population that integrates into the labor market and its rising needs, together with the excellent location of Bnei Brak near this population and in a circle surrounding Tel Aviv, are a factor in the flourishing of the entire area. We see this transaction as further tangible evidence of the potential inherent in improving our property portfolio and our ability to carry out sales transactions, even at this time, at prices significantly higher than the book value of the properties.”