Deals were concluded with Super-Pharm, the Ram restaurant, Home Center, Cellcom and Domino's Pizza. Negotiations are underway with Super-Sol and Polgat-Kitan.
Amot Investments and Nitsba have so far leased out 4,000 sq.m. at the commercial centre being built at the new central Egged bus station on Jaffa Street, Jerusalem. Engineer Aryeh Kofiler is marketing the centre. All the contracts are index-linked. Rent will usually increase by 10% on exercise of the option. The following is a series of outstanding transactions:
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- Super-Pharm rented 582 sq.m. at 4.5% of turnover but not less than $25 per sq.m. per month, under a five-year contract with a five-year extension option.
- The Ram restaurant rented 538 sq.m. at 8.5% of turnover, but not less than $50 per sq.m., under a long-term contract.
- Home Center rented 500 sq.m. at 3.5% of turnover but not less than $18 per sq.m. per month, for the long term.
- A coffee shop rented 114 sq.m. at 8% of turnover, but not less than $50 per sq.m. per month, for the long term.
- A bookshop rented 90 sq.m. at 6.5%, but not less than $50 per sq.m. per month, under at five-year contract with a five-year extension option.
- A restaurant rented 70 sq.m. at 8% or $50 per sq.m. per month.
- Quick Phone rented 70 sq.m. at 3% or $50 per sq.m. per month.
- A sweetshop rented 70 sq.m. at 8.5% of turnover but not less than $50 per sq.m. per month. Frozen Yoghurt rented 40 sq.m. on identical terms.
- Domino's Pizza rented 43 sq.m. at 8.5% or $112 per sq.m. per month. The rent is high because the deal also includes an adjacent eating plaza.
- Cellcom rented 34 sq.m. at 3% or $50 per sq.m. per month.
- A Judaica store rented 30 sq.m. at 6% of turnover of $50 per sq.m. per month.
- Juice Land (selling natural fruit juices) rented 26 sq.m. at 8.5% of turnover, but not less than $125 per sq.m. per month. The reason for the high rent is that this outlet is kiosk-shaped, with a high expected turnover.
The developers are negotiating two major deals: Super-Sol or a private food chain will rent 1,100 sq.m., forming the principal anchor of the center. The lessee will pay 3% of turnover, but not less than $15 per sq.m. At the same time, negotiations are underway for leasing out 500 sq.m. to the Kitan-Polgat chain, at 5% of turnover but not less than $13 per sq.m. per month.
Published by Israel's Business Arena February 6, 2000