Bank Otsar Hahayal sells Ramat Gan headquarters

Otsar Hahayal Photo: Eyal Izhar

The bank will post a profit of tens of millions of shekels on the NIS 82 million deal.

Bank Otsar Hahayal is selling the site of its headquarters for NIS 82 million. Sources inform "Globes" that the bank, which is part of the First International Bank of Israel (TASE: FTIN) group, will sell its offices in the Rogovin Tidhar Tower in Ramat Gan to Kobi Rogovin, one of the builders of the tower. The property contains 4,000 square meters and 72 parking spaces. It is believed that the bank will post a profit in the tens of millions of shekels on the sale. The deal reflects a price of NIS 17,000 per square meter, in line with the high prices currently prevailing in the office space market.

It is believed that Bank Otsar Hahayal will continue renting the offices for a year, then move to a new site in one of the group's buildings. The bank's new headquarters will be smaller than its current location. The deal is significant in comparison with the bank's size; the bank's 2017 profit was NIS 70 million.

The sale is part of the First International Bank group's effort to improve its efficiency ratios.

Bank Otsar Hahayal has reduced its staff by hundreds of employees in recent years. The bank is also cutting down its real estate space and has sold several properties, including its offices in the Kolbo Shalom Tower in Tel Aviv, a deal on which it also posted a profit in the tens of millions of shekels.

The bank's streamlining measures also include its headquarters, which have become large in comparison with its needs. The Bank of Israel, which is also encouraging banks to adopt streamlining measures in real estate, last year published a circular granting accounting concessions to banks moving their offices away from the central region.

Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Otsar Hahayal Photo: Eyal Izhar
Otsar Hahayal Photo: Eyal Izhar
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