Major real estate deal: Sofrin sells property for 82.1 million shekels

The real estate company Sofrin Holdings, controlled by Leon and Tzahi Sofrin, has signed a significant deal for the sale of 2.5 office floors to a single buyer for self-use in the 'Mitham HaTnufa' project in the Talpiot employment zone in Jerusalem. Following the sale, approximately 69% of the office space in the project will be occupied.

The agreement covers office space with a total volume of approximately 4,657 sqm gross, 49 parking spots, and storage areas, for approximately 82.1 million shekels plus VAT. The deal involves the third phase of the project, which is in the final stages of construction and pre-occupancy.

The 'Mitham HaTnufa' project, which includes approximately 57,000 sqm for commerce and employment, is located in the heart of the commercial and employment center in Talpiot on Pierre Koenig Street, with high accessibility to light rail stations and major traffic arteries. The first phase of the project, established as a purchasing group under the management of the Sofrin Group and Orcom, includes approximately 20,000 sqm of commercial and office space.

The company, which recently opened an executive arm, is now focusing on marketing the spaces of the second and third phases. These constitute an office tower above the first phase, executed in a developer format, including approximately 36,000 sqm across 20 office floors, sitting above an underground parking lot with over 700 spaces.

This deal follows another agreement reported earlier this week, in which Sofrin, together with its partners, entered into an agreement for the sale of all leasehold rights in plots in the industrial zone of the city of Nesher, intended for commerce and employment, for approximately 113 million shekels (plus VAT).

Leon Sofrin, CEO of the Sofrin Group, noted following the signing:

"This is a strategic deal for the company, especially in this challenging period, and it highlights the rigid demand for offices in Jerusalem and the need for new Class A office towers. The buyer's trust in the project and its quality creates great value for the company and its partners. All project sales to date are expected to provide for the repayment of the remaining bank debt for the project, almost in its entirety."

"The deal, in which we are selling offices after several value-enhancement procedures, reflects the long-term strategy of the Sofrin Group – to initiate and develop quality projects in high-demand areas, enhance them along the way, and realize value at the right time. It allows us to strengthen the capital structure, generate liquidity, and direct resources to future opportunities."