Even Yehuda extends American International School’s lease indefinitely

Sources inform “Globes” that three weeks ago, the Even Yehuda local council indefinitely extended the Walworth Barbour American International School’s147-year lease. The revised lease, signed on February 4, was not hitherto disclosed. So far as is known, this is the first time in Israeli real estate history that land has been leased for an unlimited period to a tenant, let alone a foreign one. The terms of the lease are essentially equivalent to a transfer of ownership.

The original lease, signed on June 19, 2002, stipulated that the American International School would lease the compound for 49 years, with two 49-year options. The revised lease is for 30 years, with a 30-year option, followed by unlimited 25-year options.

The lease and additional documents obtained by “Globes” reveal that the American International School will make an $1.17 million payment to the Even Yehuda regional council, plus $42,500 a year in rent. The School will also discount entry fees to its facilities, including the library and swimming pool, for local residents.

The deal is contingent on the approval of the Minister of the Interior, since it constitutes the sale of local council land.

Published by Globes [online] - www.globes.co.il - on February 23, 2003