High tech company Comverse bought a 40 dunam (10 acres) site at Raanana’s northern industrial zone from two companies controlled by Roni and Adi Savir, for $24 million in cash.
The site is designated for the construction of 90,000 sq. m. office space to be used by Comverse. The plan, which has already been approved by the local building committee, is currently under consideration by the central district committee, and is likely to be approved. Should the plan be rejected, Comverse will construct only 60,000 sq. m., in accordance with the present 150% town building scheme, and payment will drop to $17 million.
Comverse will apparently complete the construction in 2003, at an overall investment of $100 million (under the enlarged version, including land). At that point, it will relocate from its 50,000 rented space at Ramat Hahayal in Tel Aviv.
Comverse, whose major shareholder is Koby Alexander, decided a year ago to move from rented to free-hold space due to yield considerations, and the fact that the company has $700 million in cash.
The site is next to the Digital buildings, not far from Aurec’s headquarters. The transaction will increase Raanana’s importance as a key home base for high tech companies. The Raanana municipality offers entrepreneurs concessions such as exemption from municipal rates and approval for setting up kindergartens for staff’s children on company premises.
Published by Israel's Business Arena October 3, 1999