Elram, owned by Ashdar and the Israel Corporation, has completed leasing 4,500 sq. m in the commercial center it is building at the corner of Bialik and Jabotinsky Streets in Ramat Gan. The center has 6,000 sq.m. The leases have not yet been signed. The project, planned for three commercial floors beneath a residential tower, is only in the beginning stages of construction.
At the same time, Elram is negotiating with movie distributors Globus Group and Yitzhak Shani for the lease of 1,000 sq. m for cinemas. Rental fees will be 12% of the turnover. MacDonalds will lease 300 sq. m and pay 4-6% of its turnover, on a graded scale. Apropos and Cafe Alexander are negotiating the lease of several hundred square meters, and are searching for franchisees.
A large group of local businessmen and franchisees agreed to rent approximately 3,000 sq. m in the commercial center. Rental fees will be $40-55 per sq. m. per month, index-linked, or 6-9% of turnover (according to the type of business), whichever is higher. Some of the contracts are for 5 years with an option for another five, and some contracts are for 2-3 years with an option for a similar period.
Elram bought the land, in equal parts, from the David Cohen and Ruth Becker families. The sellers received $1.5 million in cash and will receive 35% of the project, including 24 of 66 apartments. The 4 and 5-room apartments will sell at an average $100,000 per room. The commercial center will be managed jointly.
The Ramat Gan Municipality will receive 1,400 sq. m of the offices instead of levies.
In contrast to accepted practice, Elram has not signed an agreement for financial coverage. The company is receiving current credit from The First International Bank at market rates, without using closed accounts.