Annual rent from the power center is NIS 22 million.
Sources inform ''Globes'' that REIT Asset Management (Israel) Ltd. (formerly Azorim Properties) has bought Fidias’s 60% holding in the power center at Bilu Center, south of Rehovot, for $64 million. Fidias is controlled by Meshulam Levinstein Contracting and Engineering Ltd. (TASE:LEVI). Tnuva Food Industries Ltd. owns the other 40% of the rights to the lot.
Fidias acquired the leasing rights to the lot until 2059 from the Development Authority. The 63-dunam (15.75-acre) lot includes a 28,000-sq.m. power center and 857 parking spaces. The lot has building rights for an additional 4,000 sq.m. There is also an adjacent ten-dunam (2.5-acre) lot owned by Israel Land Administration (ILA), which is mainly used for parking and traffic.
Annual rent from the power center is NIS 22 million, at an average rent of $14 per sq.m. per month. Some leases expired this year, and were renewed at higher rates, up to $19 per sq.m. per month. Based on the higher rents and building rights, the return on investment is 8-9%.
Published by Globes [online], Israel business news - www.globes.co.il - on November 27, 2005