Another deal Yielding real estate High in Tel Aviv: Group Adi ZimOwned by businessman Adi Zim, sold toClal Insurance Half of its rights in the SKY TOWER tower in the Hassan Arafa complex in Tel Aviv at a price of NIS 37,000. The price reflects a rent of NIS 190 per square meter, which is considered one of the highest recorded recently.
Sky Tower is located at the corner of Hamsger and Yitzhak Sadeh streets, in the Hassan Arafa compound, and the Adi Zim Group, the developer of the project, sold NIS 505 million 50% of its rights in the top 9 floors of the 32-story tower in total, to the Clal Provident and Pension Insurance Group .
According to businessman Adi Zim, owners of the Zim Group, this is a total transaction that embodies a value of NIS 410 million (together with the Clal Group) and that the 9 floors with a total area of 11,000 square meters were leased long-term to the leading high-tech companies Papaya Games and will be dropped. Rent of NIS 190 per square meter, based on a 6% yield calculation.
Zim emphasizes that this is the business complex that will be the leader in Tel Aviv over the next few decades and will include 14 towers with mixed uses and that high-tech companies and firms such as Herzog, Fox, Ne’eman Law Firm have moved to it due to its high branding and strategic location between Ayalon Lanes. And the red line of the light rail to be opened towards the end of 2022.
This is another huge transaction of the Zim Group, which recently made a deal worth NIS 400 million, when it purchased an area of 25 dunams in Bat Yam through the ALL IN Group. The Adi Zim Group also promoted an all-in-one mixed-use project that combines commerce and hotels on HaSolelim Street in Tel Aviv.
As mentioned, this is one of the highest transactions made in income-producing real estate in the country, calculated per square meter, but apparently a rental price of NIS 190 per square meter, which probably constitutes a record, is not the end of the rapid price increases for Tel Aviv-based income-producing real estate. Especially on the part of high-tech companies and it is not inconceivable that the NIS 200 per square meter threshold will soon be broken.