The company is buying the HP Israel building in Ra'anana for NIS 110 million.
Sources inform ''Globes'' that Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) will sign a contract in a few days to buy the Hewlett-Packard building in Ra'anana from Shuky Sharon for NIS 110 million. The building is near other high-tech properties in the north Ra'anana industrial zone, including the NICE Systems Building, SAP Israel Building, and the Texas Instruments Israel Building.
The HP Israel Building, built in 1999, is considered one of the most luxurious high-tech properties in Israel. The four-floor HP Israel Building has 10,000 square meters of office space and 400 underground parking spaces. HP Israel pays NIS 53 per sq.m. per month (in finished condition) and NIS 450 per parking space per month, for a total rent of NIS 8.5 million. HP Israel recently extended its lease for six years to 2014 at NIS 65 per sq.m. per month. The return on investment is 7.7%. The rent is 30% below the going rates in the area, which are NIS 55-60 per sq.m. per month for office space in shell condition and NIS 75-85 per sq.m. per month in finished condition.
Ra'anana is developing and there is no office space for sale in the area. Office space is 97% occupied.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008