Harel, Ashtrom to buy Deutsche Telekom property

TEL AVIV, ISRAEL: Israel's Harel Insurance Investments and Financial Services and Ashtrom Properties agreed to acquire from Deutsche Telekom an office complex in the centre of Leipzig for 29 million euros ($43.29 million).

At the same time they signed a contract to rent 96 percent of the complex to a wholly owned subsidiary of Deutsche Telekom until Dec. 31, 2018 for 2.32 million euros a year, the companies said in a statement on Sunday.

The Israeli firms will acquire the property through a partnership they set up in which Ashtrom owns 51 per cent and Harel 49 per cent.

Ashtrom, a real estate company, said in a statement it will continue to cooperate with Harel in additional deals in Germany.

Harel is Israel's third largest insurer with an 18 percent market share. Last month two of its subsidiaries agreed to buy an office building in Clerkenwell, London for 11 million pounds ($18.02 million).