Blue Square Israel will instead rent a 7,400-sq.m. megastore under construction in the Hutzot Hamifratz mall in Haifa.
Blue Square Israel (NYSE: BSI) sold to Hutzot Hamifratz’s developers its store in the Hutzot Hamifratz mall in Haifa, for $5 million. The sale reflected a price of $1,300 per sq.m. for the 3,800-sq.m. supermarket.
Blue Square has rented in its place a 7,400-sq.m. building in the mall, where it will open a megastore. Hutzot Hamifratz’s developers will build the store especially for Blue Square. Blue Square will pay $9.50 per sq.m. per month, index-linked in a 10-year lease, with a 10-year option, at a 10% increase in rent, if exercised. Blue Square has leased back the supermarket it sold in a short-term lease until the new building is ready.
In separate deals Ace Hardware and Office Depot extended their leases in Hutzot Hamifratz for five years. The two stores have a combined area of 4,200 sq.m. They will pay $12 per sq.m. per month, index-linked.
Hutzot Hamifratz is owned by Ofer Brothers, Koor Properties and Ashtrom, and has a total area of 46,350 sq.m.
Published by Globes [online] - www.globes.co.il - on January 19, 2003