Ayalon Holdings acquires 80% of South Africa House in Ramat Gan for 45.5 million shekelsThe insurance company purchased the building from Altira Assets as part of its strategy, which includes, among other things, an increase in its portfolio of real estate assets; the building is expected to yield an annual return of 7%
04.09.18 | Dotan Levi
Ayalon Holdings has signed an agreement to purchase 80% of the rights in South Africa House, located in the Diamond Exchange compound in Ramat Gan from Altira Assets for ILS 45.5 million.
The building in question is an office building located on the corner of 12 Menachem Begin Street and 1 HaRakon Street. It comprises six floors, most of which are leased as offices, except for the ground floor which is used for retail.
The building also includes three basement floors that serve as a car park. In total, the building has an area of approximately 8,000 square meters of which 4,235 sqm are above ground and 3,868 below ground. Ownership of the building is held by the Wallach family (20%) and the remainder (80%) is owned by Altira Assets, which is owned by six shareholders, five of whom are foreigners and one an Israeli named Asher Rabinowitz. Ayalon Holdings acquired Altira’s stake while the remaining 20% remains in the hands of the Wallach family.
South Africa House was constructed in the early years of the 21st century and houses, among others, attorneys, CPAs and financial companies. Occupancy in the building currently stands at only 86%, so that the buyers also expect an increase in the yield, expected to be 7%.
The acquisition of South Africa House by Ayalon Holdings is part of a strategic plan aimed at concentrating the Group’s core activities – insurance, real estate and credit, and to expand them. At the beginning of the year, as part of the plan, the company sold its holdings (50%) in the investment house Ayalon Mutual Funds to Noam Braverman, and also issued bonds and shares.
Shlomo Grofman, chairman of the board of directors of Ayalon Holdings, said following the deal that “the acquisition of South Africa House is one of a number of deals that we are busy taking forward in order to increase the portfolio of Ayalon Holding’s income-producing properties”.
Ayalon Holdings was represented in the deal by Adv. Dor Shacham and Adv. Oshri Yamin of Hamburger Evron & Co. The seller was represented by Adv. Asher (Kuki) Rabinowitz and Adv. Emil Gehorsam of law firm A. Rabinowitz & Co. The sellers in the transaction were represented by Index Real Estate, a company owned by Noam Brender and Elad Fox, which represents international company Savills in Israel.