The Government Accommodation Administration has leased 9,000 sq. m. of office space in Ramla from NZBA for $14 per sq. m. per month, index linked, under a ten year contract. The contract was signed a month ago, but has only just been made public. The Administration will build government regional offices at this site, as part of a larger project for government offices in all the chief towns and cities in the country.
Under the terms of the contract, the Accommodation Administration received an option to purchase the property at any time for $1,900 per sq. m., i.e., $17 million. This is the first time the government has signed a lease with an option to purchase.
The Administration will transfer to this site offices of the Ministry of the Interior, the regional Planning and Building Committee, the Israel Land Administration, and others.
The Government Accommodation Administration recently cancelled the tender for selection of a contractor to build 25,000 sq. m. of government offices in Beersheba. The Administration put the contract out to tender to seven companies, but only received one offer, that of Ben Yakar Gat with Industrial Buildings. According the tender, the contractor would undertake to build the offices for the government, receiving in return building rights for 5,000 sq. m. of commercial property with an 800 space car park. The State would also pay him a certain sum, and this was the subject of the tender. Ben Yakar Gat and Industrial Buildings demanded too high an amount in the State’s view. The State decided to negotiate with the five other companies which participated in the tender, but failed to bid: Ashtrom; Meshulam Levinstein; Merlaz/Mishor Hahof Building and Properties; Sammy Katzav; and Schuster Bros.