The 12-dunam (three-acre), 49-year deal with the Tel Aviv municipality was the first in the compound. The municipality is negotiating with several other companies.
The Tel Aviv municipality and Ampa Investments today signed an agreement to extend the lease on Yigal Alon St. for another 49 years for $4.2 million. The deal was the first in the municipality's capitalization campaign in the city's eastern business zone.
The municipality has prepared a list of 15 assessors. Two assessors value every plot separately, and the average of their valuations will be used.
The capitalization of the leases concerns only 12 dunam (three acres) of the 24-dunam (six-acre) area, ownership of which is shared equally by the municipality and the Israel Land Administration. The company has promised to capitalize the rest of the area by 2010. If this is not done, the plot will be returned to the municipality.
The municipality is negotiating with several more companies, including Haargaz, the Israel Electric Corporation, and Amcor.
Published by Globes [online] - www.globes.co.il - on July 22, 2002