Harel, Menora to buy Norwich office building

TEL AVIV: Harel Insurance Investments & Financial Services and Menora Mivtachim Holdings will each acquire 48% of a partnership that is buying an office building in Norwich, England, for £134.4 million (RM742.25 million).

Harel and Menora, which are among Israel's top five insurance groups, will each pay £64.5 million, the Israeli companies said on Dec 10.

The 33,500 sq ft building is leased entirely to Aviva Central Services UK, a subsidiary of Aviva International Insurance, until December 2029. Annual rent from the building is £11.5 million. The investment is expected to yield 8% annually.

Harel and Menora said the investment will be made through various subsidiaries that are institutional investors, largely through their investment portfolios, provident funds and pension funds. Therefore the investment is not expected to have a substantial impact on the companies' financial results, they said. -- Reuters