The Chinese government has bought Comverse House in Tel Aviv's Ramat Hahayal high-tech industrial zone for NIS 192 million. The six-floor building covering 16,000 square meters will serve as the new Chinese Embassy in Israel, replacing the existing building in Tel Aviv's Ben Yehuda Street. The building also includes a 15,000 square meters underground car park with space for 350 vehicles and storage.
The Chinese government has agreed the deal with Levinstein Properties Ltd. (TASE: LVPR), controlled by Shaul Lotan, and a partner, who each own a 50% stake in the building.
In January 2015, Comverse, which had leased the building left for a new premises in Ra'anana. Over the past year Levinstein has renovated the building at a cost of NIS 20 million while seeking a new tenant or buyer.
The Chinese government, which has been seeking a building to expand its Tel Aviv embassy, had been linked with the Dan office building in Herzliya Pituach, which was eventually sold to Delek Group Ltd. (TASE: DLEKG) for a new headquarters.
The Chinese have set a new trend with virtually all the country's embassies located in central Tel Aviv or Ramat Gan near the Diamond Exchange. The Chinese may convert part of the Ramat Hahayil building into residential accommodation to house embassy staff.
Published by Globes [online], Israel business news - www.globes-online.com - on April 11, 2016
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