Hamashbir Lezarchan will rent from Israel Land Development 4,000 sq.m. at the Seven Stars mall under construction in Herzliya. Hamashbir will pay 4% of turnover in rent, but not less than $200 per sq.m. per year, or $16.7 per sq.m. per month, index-linked. The contract is for ten years, with an option for another ten at an additional 5% if the option is exercised. This is the largest deal yet signed for the mall, and one of Hamashbir’s largest.
Israel Land Development has so far leased out 50% of the 20,000 sq.m. mall. In another large deal, Israel Theaters rented 2,000 sq.m. for six movie theaters. It will pay 10-14% of the turnover, on a sliding scale in accordance with proceeds, but not less than $14.5 per sq.m. per month, index-linked. The contract is for ten years, with an option for another ten, at an additional 10% if the option is exercised.
Super-Pharm rented a 700 sq.m. store. It will pay $29 per sq.m. per month. April, owned by rival chain store Neopharm, rented a 200 sq.m. store at $60 per sq.m. per month . Both these contracts also have a turnover percentage track, and are ten-year contracts with an option for another ten, at an additional 10% if the option is exercised.
The Seven Stars mall will open in September 2000. The principal contractor is Avi Arenson and Bank Hapoalim is providing financial coverage. Israel Land Development purchased the land last year from the Herzliya municipality for $12.85 million. A major part of the mall is designated for an entertainment center.
Published by Israel's Business Arena July 18, 1999