http://www.globes.co.il/serveen/
Clal Insurance to buy 2 buildings in Ramat Hahayal for $22m
One building is leased to the Police Yarkon Sub-District HQ, the other to Eurocom Communications. Clal Insurance expects to make a return of 8.5%.
Guy Yamin 8 Feb 05 17:50
Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) will sign an agreement next week to buy a lot in Ramat Hahayal, Tel Aviv, with two buildings, from Nof Haaretz Construction Enterprises Ltd. for $22 million. Clal Insurance reportedly expects to get a return of 8.5% on the deal.
The two buildings have 10,000 sq.m. in aggregate space. The first building, with 4,000 sq.m., was leased to Eurocom Communications in late 2004 at $730,000 a year in a seven-year index-linked lease. Eurocom will occupy the premises in early 2006.
The second building, with 6,000 sq.m., was leased to the Israel Police Yarkon Sub-District in mid-2004. The police will pay $1.14 million a year in a 20-year lease, for a total of $22.8 million. The police will pay $12.50 per sq.m. per month, plus $90 per month for each parking space. The police expect to occupy the premises in late 2005. The building is now being adapted to the police's specifications to replace the Yarkon Sub-District's current headquarters on Harakevet St. in south Tel Aviv.
Published by Globes [online], Israel business news -
www.globes.co.il - on February 8, 2005