Express delivery company UPS Israel has leased 3,000 sq.m. in a building from the publicly traded company Building Reserves, controlled by Shimon Kedem, at 6 Hayarkon Street in Bnei Brak, next to the Ayalon all complex. UPS will pay a monthly $11 per sq.m., index-linked, in a two-year contract, with an option for another five years. The company will also invest $500,000 in the property.
UPS vacated 1,600 sq.m. in an adjacent building on Bar Kochba Street, at the corner of Ben Gurion Street It leased the premises from Kardan, owned by Avraham Shapira and his family, and paid $8 per sq.m. per month. The total area of the building is 2,500 sq.m. The Shapira family evicted all the building’s tenants since it plans shortly to implement a long-standing plan to build an office and commercial tower on the site.
UPS relocated to twice as large an area due to its expanding activities in Israel. The company is managed by Leor Sagi. The building on Hayarkon Street has a total of 7,000 sq.m., and the remaining area is leased to other companies.
UPS Israel is a franchisee of UPS International. Some 50% of the Israeli UPS is owned by Avraham Livnat, who also owns a transportation company. The other 50% is owned by international forwarders, customs agents Orin, controlled by the Lamdan family.
Building Reserves is controlled by MTM, whose major shareholder is Kedem.
Published by Israel's Business Arena June 7, 1998