Real estate investment trust Reit1 (TASE: RIT1) has agreed to buy 45% of the site of the former Sypholux factory in Yigal Alon Street in Tel Aviv for NIS 127.7 million from A. Libental Holdings (TASE: LBTL), controlled by Ofir Arviv, and privately-held company Admit Automotive Industries and Services in Jerusalem Ltd., owned by the Manor family.
The Sypholux site covers four dunams (1 acre) on Yigal Alon Street close to Hashalom Road and Hashalom railway station. The partners are promoting a plan to build a tower with 54,000 square meters of space above ground for rent for offices and commercial use, and 12,000 square meters of space below ground for commercial use and parking. The deal values the land at NIS 282 million. The reason for the low valuation is probably the fact that along the way the partners will have to renew the leasing agreements with the Tel Aviv municipality on the site and to pay some NIS 324 million for use of the site for office, residential, and commercial use.
Shmulik Rofe, CEO of Reit1, said that the deal was a very significant one for the trust, and was made against a background of a strengthening office market in Tel Aviv in the past two years. "We see the Sypholux site, which has a winning location next to the main road junction in the country and benefits from ideal accessibility by public transport, as an asset of the highest quality, with the possibility of obtaining an immediate building permit.
"We believe that in the light of recent geopolitical developments in our region, this is an ideal time to enter into a deal of this kind. Together with our high-quality partners in the site, the Manor family and Ofir Arviv, we are confident of our ability to advance the project rapidly and exploit the site’s unique potential."
Published by Globes, Israel business news - en.globes.co.il - on November 12, 2025.
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