Airport City Sells 23,500 SqM for $24 Mln to Industry, Car Companies, Next to Ben-Gurion Airport

Car rental firms Budget and Eldan purchased space for $12 million. Negotiations are underway for the sale of 10,000 sq.m. to Shlomo Rent a Car for $10 million.

Developers of the Airport City center for industry, high-tech and offices, near Ben-Gurion Airport, have recently sold 23,500 sq.m. in the center in a series of deals, mainly in the logistic part. Proceeds from the deals amount to $24 million.

In addition, the developers are in advanced negotiations for the sale of 10,000 sq.m. in an 18 dunam (4.5 acres) plot to Shlomo Rent a Car. The price has not been finalized, but will apparently be about $10 million.

The following deals were mostly based on $1,000 per sq.m. for buildings either in shell condition, or half-finished. The prices include the right to use the attached land, as stipulated in each deal:

  • Car rental company Budget purchased 6,000 sq.m. in shell condition, on an 8 dunam (2 acres) plot, paying $6 million.

  • Car rental company Eldan purchased 4,000 sq.m. in shell condition, on a six dunam (1.5 acres) plot, paying $4 million. .

  • P.K. Generators, controlled by the Ituran group, purchased 5,500 sq.m. in shell condition on a 7.5 dunam (1.875 acre) plot for $5.5 million.

  • Conitex purchased 3,000 sq.m. in shell condition on a 4 dunam plot for $2.95 million.

  • Tyre importer Cogil purchased 3,000 sq.m. of completely finished space, on a 4.25 dunam (1.0625 acre) plot, for $3.25 million.

  • Plasson purchased 2,000 sq.m. on a 3 dunam plot (0.75 acres) , for $2 million.

The deals were mostly concluded on the assumption that the land component was $370,000 per dunam, i.e. $$370 for the land, per built sq.m. The rest of the price covered construction and auxiliary expenses, plus developers' profit.

Published by Israel's Business Arena on 23 April, 2000

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