High tech company Orckit is holding advanced negotiations with a group of entrepreneurs, headed by Institute of CPA in Israel president Alex Hillman and real estate agent Amos Glazer, to rent a 3,350 sq.m. building at 126 Yigal Alon Street in Tel Aviv. Orckit will pay $16-$25, index-linked, per sq.m. per month. The lease is for two years, with a two-year option.
The property contains a 2,200 sq.m. office area, to be rented for $16 per sq.m.; a 500 sq.m. commercial floor, to be rented for $25 per sq.m. per month; and a 650 sq.m. cellar, to be rented for $9 per sq.m. per month. The owners of the property, the construction of which has begun, are: Hillman, Glazer, attorney Dov Fishler, accountant Yaacov Friesler, insurance agent Zvi Pelmon, and others. The group purchased the 1 duman (0.25 acre) site in 1995 from private owners for $1.6 million.
In an earlier transaction, Orckit rented the adjacent 4,200 sq.m building, plus another 1,000 sq.m. of warehouses, from Yoel Ravitz. Orckit will pay $15 per month per sq.m., index-linked, for the offices under a two-year lease with a two-year option. The two plots were united for building percentage purposes. At the moment, construction is 200%, according to a town building and planning plan; however, if a town building and planning plan for 300% is approved, the buildings will be enlarged. The united plot is 5.5 dunams (1.375 acres), and if the enlarged plan is approved, the area of construction will be 16,500 sq.m.
Published by Israel's Business Arena on October 24, 1999