Cellcom is negotiating a deal with the Israel Land Administration (ILA) to buy a 72-dunam (18-acre) site in Modi’in. Cellcom plans to construct its communications center, to be called “Cellcom House,” at the site. Cellcom will pay an estimated $17 million if the deal goes through, reflecting a price of $240,000 per dunam ($960,000 per acre), including development expenses. The company will construct 104,000 sq.m. of principal space, with 145% construction rights.
One source, however said the negotiations had been halted, and Cellcom would remain in Herzliya Pituah for the moment. Cellcom recently asked the Ofer brothers to extend its lease for 11,000 sq.m. in Beit Merkazim by a few years. Cellcom rents 20,000 sq.m. in Herzliya Pituah, including 3,000 sq.m. from Bayside Land Corp. (Gav-Yam), under a lease that extends for the next four years, and also rents space from Formula Systems (Nasdaq: FORTY). Cellcom is also likely to increase the space it rents from Formula.
Cellcom called off its recent advanced negotiations with Delek Real Estate to rent 55,000 sq.m. with an option for an additional 25,000 sq.m. in Hod Hasharon at $14 per sq.m. per month. Cellcom announced it had other plans , adding that if it nevertheless decided to rent new buildings, it would prefer Delek’s offer to that of SGS Building-Shemen and Caniel in Petah Tikva's. Kiryat Arie.
Some sources say it has virtually already been agreed that Celcom will buy (rent, formally) the Modi’in compound from the ILA. Minister of National Infrastructures Avigdor Lieberman told Cellcom that the ILA was obliged to sell the land in a tender. According to these sources, it was agreed that the ILA would issue a tender with the participation of Cellcom, which would win either by making the best offer or by the addition of various preconditions to the tender.
Published by Israel's Business Arena on September 2, 2001