The company has bought 73% of Ra’anana’s Millennium House for NIS 130 million.
Sources inform ''Globes'' that British-Israel Investments Ltd. (TASE: BRTS) will buy one-third of the IKEA Israel project in Rishon LeZion when the legal hearings on the project are over. The company will exercise its option from Iris Hagilboa Construction and Development Ltd., which owns the land rights of the Me’uyan Soreq site where the IKEA store will be built. British-Israel can increase its option to 43.33%. Bronfman Fisher Investments Inc. owns IKEA Israel.
IKEA Israel chairman Ron Hadassi said that NIS 300 million had already been spent in developing the site, not including investment in the adjacent planned shopping center. British-Israel has extended Iris Hagilboa an $18 million loan for the project.
In a separate development, British-Israel has bought 73% of the 18,000-sq.m. Millennium House in Ra’anana for NIS 130 million from A. Arenson Ltd. British-Israel made the deal though its wholly owned subsidiary Clal Real Estate Investments Ltd. Millennium House is fully leased, with rent averaging $12 per sq.m. per month. Annual rent, net of operating costs, is NIS 10 million a year, giving a return on asset of 8%. The property also has 10,000 sq.m. in unused building rights.
Published by Globes [online], Israel business news - www.globes.co.il - on July 12, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007