In the second transaction, Manivim acquires part of a building in Acre, with a total area of about 2,800 square meters, for NIS 33 million; the property is leased to Clalit Health Services, and is expected to yield an annual NOI of NIS 2.15 million;
Yield the new Harit Foundation Announced today two deals for the purchase of two income-producing properties in the southern industrial area of Or Yehuda and in the center of Acre. The total volume of the two transactions amounts to approximately NIS 97 million, not including transaction expenses.
In the first transaction, Manivim acquires an income-producing property in Or Yehuda, known as the “Fan Building”, for NIS 64 million (excluding transaction expenses in the amount of NIS 4.3 million (mainly purchase tax)). The purchased building includes four office floors and a ground floor with commercial potential in an upper area of about 6,500 square meters, in addition to about 180 parking spaces on two floors of a basement in an area of about 5,300 square meters.
The building is located in the southern industrial area of Or Yehuda, and has high accessibility to major transportation arteries.
As of this date, most of the building areas (approximately 90%) are leased to a single tenant, who sublet parts of the building areas to additional tenants, in a lease agreement that is valid until 31.12.2021. The company is examining the possibility of extending the rental periods for some of the tenants in the building.
After the completion date of the transaction, and as most of the building is vacated by tenants, the company estimates that additional investment in improvements and adjustments of NIS 15-20 million will be required, in order to adapt it to new tenants.
The annual NOI expected from the full lease of the building, after making the improvements and adjustments, is estimated at NIS 5.5-6.1 million.
The payment of the consideration in the transaction is based on the shareholders’ own sources, including the consideration for the issuance of bonds (Series C).
In the second transaction, Manivim purchases part of a building in the city of Acre for NIS 33 million (excluding transaction expenses in the amount of NIS 2.2 million (mainly purchase tax)). The purchased area is approximately 2,800 square meters, and includes approx. 15 covered parking spaces. The property is rented to a single tenant, Clalit Health Services, for a long period. The company estimates that the property is expected to yield an annual NOI of NIS 2.15 million.
The transaction was accompanied on behalf of Manivim Attorney Yafit Plassenfeld andBohdana generation From the office of Goldfarb Seligman, and on behalf of the Phoenix Attorney Hagit Bavli andYair Teitelbaum From the office of Yigal Arnon.
Manivim currently owns 15 properties with a total area of approximately 207,000 square meters and approximately 38,000 square meters of parking space. As of September 30, 2021, the total value of the income-producing real estate it owns amounted to NIS 1.88 billion. About two weeks ago, the company published its financial results for the third quarter of 2021, in which it reported good demand for all its properties. NIS 32.1 million, an increase of 9.2% compared to the corresponding quarter in 2020; the NOI grew by 6.1% to NIS 28.7 million, compared with the corresponding quarter last year.
Ofer Abram, Photo: Avishai Finkelstein
Ofer Abram, CEO of the New Harit Fund“The fan building in Or Yehuda is in an excellent location, in the center of Gush Dan, and has significant improvement potential, and the possibility of obtaining an excess return compared to similar properties on the market. The size and character of the building make it especially suitable for a single tenant This transaction is in line with our assessment of the continued prosperity of the office market, against the background of the noticeable increase in demand for offices. The building in Acre includes a single and strong tenant for a long time. “.
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