Olimpia Real Estate will build a 22,000-sq.m. office building on the Kiryat Arie, Petah Tikva, lot for $18 million.
Olimpia Real Estate Holdings (TASE: OLMP) is negotiating to buy the 9.2-dunam (2.4-acre) Telma lot in Kiryat Arie, Petah Tikva, from Zohar (Hason) Trade & Investments Ltd. for $6 million.
Olimpia plans to build a 22,000-sq.m. office building on the site, known as the Telma lot, because it was once occupied by a Telma food factory. The lot is currently occupied by an old empty 3,000-sq.m. structure. Zohar Trade & Investment bought the lot with a bank loan that it can no longer finance. Under the pending agreement with Olimpia, Zohar Trade & Investments will receive 26% of the proceeds from the building. Construction will cost an estimated $18 million.
Published by Globes [online], Israel business news - www.globes.co.il - on May 21, 2006
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