CreoScitex is negotiating a deal to rent 24,000 sq.m. in the high-tech zone being constructed by Shemen Industries and SGS in Kiryat Arie in Petah Tikva. If the deal goes through, CreoScitex will pay $15.5 per sq.m. per month, fully finished, index-linked, under a 10-year lease, with two five-year options. Rent will rise 10% on exercise of the first option and 5% for the second. CreoScitex will also rent 750 stores at $95 per sq.m. per month, under the same terms.
CreoScitex is asking for a clause in the lease granting it an option to rent another 5,000 sq.m. in the coming five years, under the same terms. The request will probably be granted.
The area to be leased includes 14,000 sq.m. of manufacturing space and 10,000 sq.m. of office space. Bank Hapoalim will provide financial coverage in the form of an initial loan to finance construction and a second, long-term loan, which will be repaid from the rent.
The project, which will have 110,000 sq.m. when completed, will occupy a 49.5-dunam (12.375-acre) plot. It is owned in equal shares by Tel Aviv Stock Exchange-listed Shemen Industries and construction and real estate firm SGS, owned by Ehud Samsonov and Amos Samia. SGS will also be chief contractor. The developers demolished the old Etz Hazait buildings on the site, and SGS is now doing the digging work.
CreoScitex, currently located in Herzliya Pituah, is also negotiating with several other developers in Petah Tikva and near its headquarters to rent office buildings and manufacturing facilities in a similar location. No final decision has been made.
Published by Israel's Business Arena on November 18, 2001