Bank Leumi sells Tel Aviv head office for NIS 623m

• Published date: 26 April 2022
• Author: Roi Weinberger
• Publication title: Globes (Rishon LeZion, Israel)

Bank Leumi is selling two adjoining buildings at 30-36 Yehuda Halevi Street; a 13-floor office tower built in the early 2000s as well as historic Beit Mani, which was built in 1910 and is subject to a preservation order and was one of the first buildings to be put up in Tel Aviv's initial Ahuzat Bayit neighborhood

The deal comprises 13,000 square meters of office space and an underground car park for more than 200 cars in one of Tel Aviv's most expensive and sought after areas in the city center, which houses many financial and tech companies.

Sella Capital said that the property will be transferred to the company when it is vacant, and the building will be leased to tech companies at full occupancy.

Sella Capital added that the rent will be about NIS 175-185 per square meter, fully finished, so that net income should be about NIS 32 million annually, with return on equity of about 10%.

Selling Beit Mani and the adjoining office building is part of a broad strategic move that Leumi has been implementing in recent years in which all management offices will be transferred to a new headquarters in Lod. This move should be completed by the end of 2023 and the bank will record a profit on the entire sale. Leumi finance division head Omer Ziv is leading the...