The deal was signed: Israel Canada purchased the Leumi Building – Real Estate

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, Signed a deal to acquire the full rights in the “Canada Acro City” project, also called “Bank Leumi Building” from Acro Real Estate. The two companies purchased the building in equal parts in June 2017 for a total value of NIS 277 million; three and a half years after the deal was signed. Value of NIS 440 million, a return of about 60% not including the improvement fee.

Acro Real Estate has announced that it has signed a deal with Israel Canada for the sale of half of its holding in the central branch of Bank Leumi. The building is located at the corner of Yehuda Halevi and Herzl streets in Tel Aviv, and that the plot in which the branch is located covers an area of ​​approximately 1,600 square meters. Since purchasing the land, the two companies have worked to improve the property, evacuate the tenant and approve a new master plan .

After successfully completing these processes, Acro decided to realize its share in the complex while enjoying a considerable capital gain as a result of the improvement and the increase in real estate prices. Acro, purchased the area for a total of NIS 138.5 million, and sold its share for NIS 220 million gross. The partnership has a bank loan of NIS 200 million, NIS 100 million will be used for Acro’s share in the loan, and NIS 120 million will go into their pockets.

Moore Investment House participated in the deal, which will hold 18% of the area, in exchange for NIS 80 million, and another investor purchased 1% for about NIS 1.2 million. Israel Canada paid NIS 38 million for its share through its independent sources, and will hold 81% of the property after the transaction (100% in its consolidated statements).

Today, the new master plan allows rights to a 40-story tower with a total area of ​​about 38,000 square meters, most of which, about 24,000 square meters, is intended for commerce, employment or hotels. About 11,000 square meters are designated The construction of 102 housing units and an additional 3,500 square meters are intended for public uses that the developer will have to build for the municipality.

About two weeks ago we reported on the emerging deal.