Developers Uri Rubin and Ronny Albek have to date rented over 50% of the 4,000 sq.m. Mikado Center they are building in North Tel Baruch. The main deals are the leasing of 1,350 sq.m. to Co-op Blue Square and 550 sq.m. to Neo-Pharm. The rents are among the highest in the area. The Center will open in January 2002.
Co-op will probably pay more than 3% of turnover, and there is an alternative method to pay rent according to a fixed rate of dollars per sq.m. per month. Neo-Pharm will pay 5% of turnover, with a minimum monthly rent in dollars. Hundreds of square meters have been rented to individual stores, which will pay $60-80 per sq.m. per month, index-linked in medium- and long-term leases.
The rents are among the highest ever paid in the Tel Aviv and central region. The high demand is mainly because the Mikado Center will be the main shopping center of the exclusive North Tel Baruch neighborhood of 1,600 apartments.
The Mikado Center will total 13,000 sq.m., broken down as follows: Two commercial floors totaling 4,000 sq.m.; an office floor of 2,000 sq.m.; a 200 vehicle parking lot of 6,000 sq.m.; and 1,000 sq.m. of public space and corridors. Veteran developer Uri Rubin, who also serves as chairman of the Association of Contractors and Builders in Israel, is the main contractor for the project. Ronny Albek is a broker in the central region who has recently begun investing in real estate.
The Rubin-Tepper group bought the site by tender two years ago from the Israel Land Administration for $5.5 million, including development. There was great interest in the center and many offers were made for it, including bids from Malibu and other leading developers. Migdal Hazohar, which wanted to move its headquarters to the site, placed second in the tender. United Mizrachi Bank is providing financial cover for the Rubin-Tepper group.
Published by Israel's Business Arena on 31 December, 2000