Two large developers have given impetus to the new industrial zone in west Rishon Lezion. The first is Gazit-Globe Ltd. (TASE: GLOB) subsidiary Gazit Israel Ltd., which acquired Hatzlahat Yehezkel Darom Yehuda, which owns several properties in the industrial zone, for $34 million.
Darom Yehuda owns a 6.5-dunam (1.625-acre) corner lot, presently occupied by a 2,900-sq.m. commercial property rented by DIY chain ACE Marketing Chains (ACE Israel). The company also owns the adjacent 30-dunam (7.5-acre) lot occupied by a 20,000-sq.m. power center, and which has 25,000 sq.m. in building rights for office space; and a second 35-dunam (8.75-acre) lot, on which the first stage of an 18,000-sq.m. power is now under construction, and which has an additional 18,000 sq.m. in building rights, and a contract with Globus Group to build a 15,000-sq.m. cinema multiplex, and additional 20,000-sq.m. in building rights.
The second developer in west Rishon Lezion is IT International Theaters Ltd., which bought a 34.1-dunam (8.5-acre) lot in Park Ha’agam from the Israel Land Administration (ILA) for NIS 26 million. The lot is part of the city’s 572-dunam (143-acre) sports, recreation and entertainment park. IT International Theaters plans to build a cinema multiplex. 200-room hotel, and congress and exhibition center.
It is not clear how the Rishon LeZion municipality permitted the construction of two cinema multiplexes so close to each other, and industry sources believe that ultimately only one will be built.
Published by Globes [online], Israel business news - www.globes.co.il - on July 2, 2006
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