Harel sells government-let 'trophy' office building

We have advised leading Israeli insurance and finance group Harel on the sale of 50 Broadway SW1, located within walking distance of Victoria Station and the Houses of Parliament, to a high-net-worth private client, represented by Investra Capital.

Harel Insurance and Finance is one of Israel's largest insurance and finance groups. Their comprehensive product portfolio includes health, life, business, and motor insurance as well as investment services such as pension and mutual funds.

Harel purchased 50 Broadway in 2014 and together with development partner, Valeo Capital, undertook a comprehensive refurbishment of the 72,560sq ft space to create high quality office accommodation. The trophy building was pre-let in its entirety to the UK government in June 2021 for a term of 20 years subject to a tenant break option after the first 15 years.

Our team advised on the real estate aspects of the transaction, including obtaining the vacant possession, arranging the pre-letting agreements, and advising on the construction to enable refurbish. The team also advised on the corporate and tax aspects of the transaction.

Commenting on the transaction, real estate partner Keith Barnett said: "We have worked with Harel on this project since the very beginning and are very pleased to have seen this progress from success to success. We look forward to working with Harel together again as the company continues to optimise its portfolio for clients."

Neta David, Head of Europe and US Assets at Harel, added: "This sale is a great achievement for Harel. It has been great to work with Keith and the rest of the Taylor Wessing team on this complex transaction. We really appreciate the personal service provided by the team and their outstanding legal support and insight not just on real estate but also on the corporate and tax aspects of the transaction."

The team was led by real estate partner Keith Barnett with support from Hanna Ross. Further support was provided by corporate real estate partner Michael Goldberg and associate Steph Hobbs and tax and incentives partner Liz Wilson and associate Pip Moss.

Savills advised Harel on the sale of the building.