Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) is beginning to sell properties ahead of its move to the Atidim Tower. Alony Hetz Property and Investments Ltd. (TASE: ALHE) subsidiary Amot Investments Ltd. (TASE:AMOT) has bought the Clal Building in Tel Aviv for NIS 97 million plus VAT.
The sale is part of Clal Insurance's move to the Atidim Tower in Tel Aviv's Kiryat Atidim area, after signing a 24-year lease for 22 floors in the building in March. Clal Insurance will consolidate its activities, which are currently scattered in 12 locations in Tel Aviv, in the new premises, in order to save millions of shekels a year.
The Clal Building is part of the Aviv Towers complex, built in 1995, at 46-48 Menachem Begin Road. The complex comprises three buildings of 10, 14, and 18 floors, with a total of 70,000 square meters of office space. Amot bought the 9,600-square meter Building C and its 260-space parking garage in full, as well as additional space in the complex. Clal Insurance will vacate the building by the end of May 2014, and Amot plans to market it from that date.
The purchase joins additional rights held by Amot in the project, including all the office space in Building B. When the deal is closed, Amot will own most of the project's office space and parking places.
Clal Insurance said that it expects to report a capital gain of NIS 21 million on the sale, not including moving costs.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2013
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