The Discount group and Israel Chemicals are looking into the possibility of leasing 50% of the new office block, Migdal Hakirya, being constructed in Ha’arba’a Street in Tel Aviv’s military compound. The project is 51% owned by Israel Chemicals, 24.5% by Hadarim Properties, and 24.5% by Bayside Land Corp., the last two named being part of the Discount group.
The building will be 22 storeys high, 4 extra storeys having recently been approved, and contain 15,500 sq. m. of office space and a 1,000 sq. m. commercial area. The plan is to set up a joint company to let the building, with Israel Chemicals and Discount leasing 8,000 sq. m. from it at $30 per sq. m. Israel Chemicals’ head office and offices of Discount group companies will transfer to the site. The rest of the building will be let on the open market. It will be ready for occupation by in two years time.
Solel Boneh recently won the tender to construct the building, at a price of $14.1 million. It beat Denia Sibus, Malibu, Ashtrom, and others. The investment in construction is $37 million, not including the land, which was owned by Israel Chemicals, until Hadarim Properties and Bayside bought 49% of it at the end of 1995, for $9.3 million.
Bayside is investing NIS 200 million in a series of projects, including its NIS 32 million share in the Hakirya Tower. The main project is the construction of another 61,000 sq. m. for offices and high-tech in Herzliya Pituah, at NIS 120 million. Tri-Com has leased 4,000 sq. m., and taken an option on another 2,000 sq. m., at $18 per month. Chip design company DSP is negotiating over a lease on 1,800 sq. m. at a similar rent. ArtCafe has leased 600 sq. m. on the commercial floor at $25 per sq. m. per month.