The company is selling 95% of its rights to the tower and 50% of the unused building rights.
The sale will be carried out through Africa Israel Properties, which is expected to register a capital gain of NIS 17 million ($4.1 million) from the deal. The company has unused building rights for 8,000 square meters (about 10 floors).
"I welcome the deal, which has great importance to the company," Africa Israel CEO Izzy Cohen said last week. "This property has no debts and was sold for a suitable price of about NIS 166.5 million and with a proper return.
"The completion of this additional deal shows that the Africa Israel Group continues to meet the goals of its work plan for 2009, while working to increase its liquid balance, among other things by realizing assets for suitable prices, and taking advantage of proper business opportunities."
NIS 5M advance payment
Africa Israel will receive an NIS 5 million ($1.2 million) advance payment within seven days from the signing of the agreement. This deal joins other of the group's realization moves recently, including the sale of the Ramat Aviv and Savionim malls to Melisron.
In addition, Africa Israel Properties gave the buyer an option, which could be realized within two years from the day the deal is signed, to acquire from the company the remaining 5% for a total of NIS 7.7 million ($1.8 million).
Should the buyer fail to realize the option, the company will have the right to force the buyer to acquire the remaining 5% for the same amount of money within a period of 12 months, which will begin at the end of the two-year period.
Africa Israel has also given the buyer an option which could be realized within two years from the delivery date, to purchase from the company the remaining 50% of the unused building rights for NIS 20 million ($4.8 million).