Sofrin Real Estate Sells Jerusalem Offices for $22 Million

Sofrin Holdings, a real estate company controlled by Leon and Tzachi Sofrin, has finalized a significant deal to sell 2.5 floors of office space in its "Tnuafa Complex" project in Jerusalem's Talpiot industrial zone. The sale, to a single buyer for their own use, amounts to approximately 4,657 square meters of gross office space, along with 49 parking spots and storage areas, for about 82.1 million shekels (approximately $22 million) plus VAT.

This transaction, part of phase three of the project which is nearing completion and pre-occupancy, means that about 69% of the office space in the project will now be occupied. The "Tnuafa Complex" spans approximately 57,000 square meters for commerce and employment, located centrally in Talpiot with high accessibility to public transport and main roads.

Sofrin is currently focusing on marketing phases two and three of the project, which include a 20-story office tower above phase one, comprising about 36,000 square meters of office space and a 700-space underground parking lot. This deal follows another recent sale where Sofrin and its partners sold land designated for commerce and employment in Nesher for approximately 113 million shekels.

Leon Sofrin, CEO of Sofrin Group, stated that the deal is strategic, especially during challenging times, highlighting the strong demand for offices in Jerusalem and the need for new Class A office towers. He added that the buyer's long-term commitment and confidence in the project's quality add significant value. The sales are expected to cover the remaining bank debt for the project.

Sofrin's strategy, as explained by Leon, is to initiate and develop quality projects in high-demand areas, enhance their value, and then realize that value at the appropriate time. This approach strengthens the company's capital structure, generates liquidity, and frees up resources for future projects and opportunities.