Harel, Ashtrom to buy Deutsche Telekom property

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 (USD 43.29 million).

At the same time they signed a contract to rent 96% of the complex to a wholly owned subsidiary of Deutsche Telekom until December 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% and Harel 49%.

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% market share. Last month two of its subsidiaries agreed to buy an office building in Clerkenwell, London for 11 million pounds (USD 18.02 million).