Google Israel is in advanced talks to lease 20 floors - one third of the new ToHa 2 tower - for NIS 90 million per year. The memorandum of understanding for the lease is due to be signed in the coming few days, sources close to the deal have told "Globes." The ToHa 2 tower is under construction at the corner of Yigal Alon and Totzeret Haartez Streets in central Tel Aviv, immediately east of the Azrieli Towers.
The ToHa 2 tower is a joint development of Amot Investments Ltd. (TASE:AMOT) and Bayside Land Corp. Ltd. (Gav Yam) (TASE:BYSD1) at an investment of NIS 3 billion. Construction is underway of the underground section of the building which is scheduled for completion in 2026.
People close to the deal have told "Globes" that Google Israel will lease 50,000 square meters at a price of NIS 150 per month not including interior design. The lease will be for 10 years with an option to extend.
Google, which has 2,000 employees in Israel, currently leases nine floor in the nearby Ampa tower (formerly Electra tower), which is also in Yigal Alon Street.
The 300 meter high ToHa 2 tower will have 77-floors with 170,000 square meters of office and commercial space and will be adjacent to the existing 30-floor ToHa 1 tower. The ToHa 2 tower will have just 1,500 parking spaces for the 20,000 working in the building so that most employees will travel to the nearby Hashalom Railway station or use the Red Line of the light rail, or the planned nearby Metro station.
Google Israel said, "We do not respond to rumors or speculation."
Amot and Gav Yam declined to comment.
Published by Globes, Israel business news - en.globes.co.il - on October 25, 2022.
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