Leumi is selling the Bank's headquarters in Tel Aviv, Beit Mani, to Sella REIT (Real Estate Investment Trust) in consideration for NIS 623 million

Rhea-AI Summary

Bank Leumi has announced the sale of its Tel Aviv headquarters, Beit Mani, to Sella REIT for NIS 623 million. The transaction is expected to yield a pre-tax profit of NIS 524 million. This strategic move is part of the Bank's plan to transfer operations to a new headquarters in Lod by the end of 2023. The sold property includes two buildings, a modern office tower and the historical Beit Mani, situated in a prime area of Tel Aviv near major transport and urban developments.

Positive

• The sale of Beit Mani is expected to generate a pre-tax profit of NIS 524 million.
• The transaction aligns with Bank Leumi's strategic move to consolidate its operations in a new headquarters in Lod.

Negative

• None.

The Bank is expected to record a pre-tax profit of NIS 524 million from this sale

This forms part of a strategic move by Leumi to gradually transfer the Bank's entire headquarters and management to a new headquarters building in Lod, in a process expected to be completed by the end of 2023

TEL AVIV, Israel, April 26, 2022 /PRNewswire/ -- Today, Bank Leumi (TASE: LUMI) announced that it is selling Beit Mani in Tel Aviv, which forms part of the complex housing the Bank's headquarters, for a sum of NIS 623 million to Sella REIT, a leading income-producing real estate investment company. The transaction involves two adjacent buildings at 30-36 Yehuda Halevi Street: a 13-story office tower built in the early 2000's, as well as a building for conservation – the historical Beit Mani building, which was built in 1910 and was one of the first buildings to be erected in the Ahuzat Bayit neighborhood. The Bank is expected to record a pre-tax profit of NIS 524 million from this sale.

The sale transaction incorporates an overall area of 13 thousand sqm, in addition to an underground parking lot with more than 200 parking spaces. This is one of the most expensive and sought-after areas in Tel Aviv, considered to be the heart of Tel-Aviv's "City", home to a large number of financial corporations, alongside leading high-tech companies. The building is located adjacent to the Tel Aviv Light Rail Red Line, construction of which is due to be completed in 2022, and also near the Park Hamesila (the Train Track Park). Omer Ziv, Head of the Finance Division, led the transaction on behalf of Bank Leumi.

The Beit Mani sale transaction is part of an extensive strategic move that Leumi has been implementing in recent years, involving the gradual transfer of all the Bank's entire headquarters and management units to a new headquarters established in Lod. The transfer process is due to be completed by the end of 2023.

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SOURCE Bank Leumi

FAQ

What is the significance of the Beit Mani sale for Bank Leumi?

The sale is expected to generate a pre-tax profit of NIS 524 million and is part of a strategic move to relocate to a new headquarters.

When will Bank Leumi complete its headquarters transfer?

The transfer to the new headquarters in Lod is expected to be completed by the end of 2023.

What is the sale price of Beit Mani?

Bank Leumi sold Beit Mani for NIS 623 million.

What is included in the Beit Mani sale?

The transaction includes a 13-story office tower and the historic Beit Mani building, along with an underground parking lot.

Who facilitated the Beit Mani sale?

Omer Ziv, Head of the Finance Division, led the transaction on behalf of Bank Leumi.