Sources inform ''Globes'' that Motorola Israel is expected to announce the location of its planned 50,000-sq.m. Kiryat Motorola within two weeks. The company has been examining a number of sites for the center, which will house all of the company’s units currently scattered around Israel. A number of Motorola Inc. (NYSE:MOT) executives recently came to Israel to tour various sites and review the architectural plans and interior design of the complex.
The executives visited the two site Motorola is now considering: Kiryat Arie in Petah Tikva, or in Airport City, near Ben Gurion Airport. Motorola Israel will reportedly receive a discount of $1.40 per sq.m. on local property taxes at Airport City: $0.60 instead of the usual $2 per sq.m. paid by high-tech companies in the industrial zone.
Motorola Israel is also considering two 19 dunam (4.75 acres) lots in Kiryat Arie: one owned by REIT Asset Management (Israel) Ltd. (formerly Azorim Properties); the other owned by New Kopel (TASE: NKPL) controlling shareholder Shlomo Shmeltzer. Both Shemltzer and REIT Asset Management CEO Amir Biram have offered to build Kiryat Motorola, and the company is seriously examining their proposals.
A contract with Motorola Israel would be significant for both Shemltzer and REIT Asset Management, amounting to $700,000 per month, or $8.4 million per year in a ten-year lease. Motorola would undoubtedly want to extend any lease, if only to avoid astronomical moving costs.
In building an independent complex, Motorola Israel is following in the footsteps of Comverse Technology Inc. (Nasdaq: CMVT) in Ra’anana. Such a complex greatly saves administration and maintenance costs, and also enhances the company’s reputation.
Published by Globes [online], Israel business news - www.globes.co.il - on May 28, 2006
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