Contractor Shimshon Zur's company D.S.M., based in Rehovot, recently sold 4,000 sq.m. on three floors of a 12,000 sq.m. building in the Rosh Ha'ayin Industrial Zone. Revenues from the sale came to $4.7 million. D.S.M. is one of the few companies which has sold significant amounts of property in the area recently.
Eight thousand square meters of the project remains, and Zur intends to lease them at a fee of $7-8 per sq.m. per month, index-linked. Rentals and sale prices have remained stable over the past year, but have eroded as a result of the freeze in the dollar rate as opposed to the increasing index rate.
Even though 8,000 sq.m. of space remains vacant, DSM has asked the towns building committee for permission to build an additional 4,000 sq.m. floor.
The company acquired the land from the Israel Lands Administration (ILA) for $200,000, and paid another $300,000 for development. The total investment, including land and development costs, amounted to some $6 million. The low price of the land and development justifies construction of an additional floor.
At the same time, DSM is presently finishing building Stage I, involving 36 houses, in a 134-house project in north-east Rehovot. Thirty four of the cottages have been sold for an estimated $10 million.