The building, on an area of about 4 dunams, with about 17,000 square meters of offices and 250 underground parking spaces, is in the heart of Tel Aviv’s Ma’ar district, and near it is the Allenby station of the red line of the light rail, which is expected to start operating In the coming months. The parties intend to rent the property in the first phase to new tenants who will replace the bank units, and later to work to improve it. The relevant building permit (TA 5000) allows the addition of building rights for the purposes of mixed uses that include residences, offices, commerce and hotels, with Yehuda Halevi Street further on Israel Canada is expected to build a 40-story tower with a similar mix of uses.
How the transaction will be financed by JTLV, from its own sources or with external financing, is still unknown. The fund included Jessica and Martin Hakimi, a Jewish couple from the USA, as minority partners in the deal.
Bank Leumi is expected to record a pre-tax profit of NIS 265 million for the sale. In May 2022, the bank sold its main management building, Beit Mani, adjacent to Beit Lin, to the Herit Sela Real Estate Fund in exchange for NIS 623 million, from which it is expected to make a profit of NIS 524 million. Delivery of the property is expected at the end of this year, but the bank has the option to postpone it Another year. Even earlier, in 2017, he sold the main branch building at the corner of Yehuda Halevi and Herzl streets (on which the Israel Canada project will be built) for NIS 277 million, from which he made a profit of NIS 265 million.
JTLV, established in 2011, specializes in the initiation and improvement of real estate assets in Israel. To date, it has raised approximately NIS 5 billion in 3 funds it has established. The fund is a partner, among others, in Ramot shopping malls in Jerusalem, Rananim in Ra’anana, Kiryat Ata, and the winery complexes in Rishon Lezion, The Colosseum and the MDA in Tel Aviv and the Medical Center in Jerusalem. At the beginning of the Corona crisis, Yitzhak Tshuva took advantage of the financial distress in which Yitzhak Tshuva found himself due to the drop in oil prices and purchased control of the new Elad residential complex from Delek Group, which he controls, in May 2020 for NIS 198 million. In 2021, the fund purchased the remainder Tshuva’s holding for another NIS 68.5 million and increased to a 90% holding in Elad. In April 2021, the fund purchased 17% of the Donitz real estate company for NIS 120 million and in June 2022 completed the merger between the two companies in a share exchange transaction, upon completion of which Elad Residential became a subsidiary of Donitz . Today, the fund owns 43% of Donitz’s shares, which currently trade at a value of NIS 1.49 billion.