E&Y Israel in talks to buy 16 floors in Tel Aviv's Midtown tower

Pangaea, Electra, and Eurocom Real Estate are jointly developing the Midtown project of two 50-floor towers.

14 February 13 17:19, Shlomit Tsur

Pangaea Real Estate Ltd. (TASE:PNGD) has announced that it is in talks to sell 16 floors (25,000 square meters) in the planned Midtown tower in Tel Aviv to accounting firm Ernst & Young Israel Kost, Forer, Gabbay and Kaiserer for NIS 256 million.

Ernst & Young Israel will buy the 16 lower floors in the 50-floor building and 475 underground parking spaces. The talks include an option to buy up to 1,000 square meters of storerooms. Pangaea said that a deal is subject to certain conditions, including approval by the Israel Securities Authority because Ernst & Young Israel audits Electra Ltd. (TASE: ELTR), Pangaea's Eurocom Real Estate's partner in the project.

Pangaea, Electra, and Eurocom Real Estate jointly bought the lot for the project from Tnuva Food Industries Ltd. for NIS 535 million 18 months ago. The lot, on Menachem Begin Road, is zoned for two 50-storey towers, one for residences and the other for offices, as well as commercial space and a park. Pangaea is currently marketing office and residential space in the buildings.

Published by Globes [online], Israel business news - www.globes-online.com - on February 14, 2013

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