The Harit Sela Real Estate Fund continues to expand and acquires additional areas in the Platinum Tower, from Revad, for NIS 115 million, according to Revad’s report, it will recognize a profit of only NIS 5 million in the overall transaction.
The fund purchases 4.5 floors of offices and commercial space in an area of 3,350 square meters as well as warehouses totaling about 900 square meters, 85 parking spaces and building rights, currently the company has 9 office floors in the tower and after the purchase the company will own almost 14 floors of the tower.
The purchase will be financed through cash in the company’s coffers (cash balances available in the amount of NIS 300 million). The rate of return on the purchase is approximately 6.40% and the rate of return on capital is approximately 13.5%.
The Platinum Tower is located, in the south of the Kirya in Tel Aviv, on 4th Street, in a central location for the business and entertainment areas of Tel Aviv. The property is located close to the construction and development areas in Tel Aviv, the Sharona complex, the TLV complex and Ibn Gvirol St. The property has good access to the Ayalon lanes and the center of Tel Aviv and is located near a light rail station. In the area, new office buildings together with the potential for growth and establishment of the area as a modern and advanced urban center.
The property is leased at an occupancy rate of 82% to 7 different tenants in the field of the capital market and high-tech, with an expected annual income of a full occupancy of approximately NIS 7 million.