Hamashbir Lazarchan will henceforth rent 2,000 sq.m. in the Seven Stars mall in Herzliya, instead of 4,200 sq.m. previously, while its rent will rise from $14 to $20 per sq.m., a 43% increase. The parties signed the lease last week. The Israel Land Development Company (Nasdaq: ILDCY; TASE:ILDC) owns the mall, which is managed by Israeli Mall Association chairman Moshe Rosenblum.
In early 2000, Hamashbir Lazarchan rented 2,000 sq.m. on the ground floor, and another 2,000 sq.m. on the second floor, at $14 per sq.m. per month, index-linked, under a 10-year lease, with a ten-year option. It has now been agreed that Hamashbir Lazarchan will vacate the second floor seven years before the expiration of the lease. Hamashbir Lazarchan committed itself to continue renting the ground floor at $20 per sq.m., while Israel Land Development agreed to reduce the space under the lease.
Hamashbir Lazarchan will pay $44,000 per month, compared with $59,000 previously a saving of $180,000 per year. The retail chain will also continue renting 900 sq.m. of service space at $8 per sq.m. per month, the same rent as previously.
The mall management has already leased 1,500 sq.m. vacated by Hamashbir Lazarchan. The Seven Stars mall has 22,000 sq.m. of income-producing space, and is fully occupied.
Published by Globes [online] - www.globes.co.il - on February 16, 2003