International software firm SAP (NYSE:SAP) has rented 10 out of 11 floors in a new office building in Raanana from construction company E. Itzhaki Building & Investment Co. owned by Ehud Itzhaki. The building is located in the Raanana office and high-tech park. SAP rented 10,500 sq.m. and 420 parking spaces for $1.7 million per year, index-linked. The lease is for a five-year period, plus two options for a three-year extension. The total value of the deal could be as much as $19 million.
This is one of the largest office rental deals transacted in the past year.
SAP rented 10 floors, totaling 9,200 sq.m. or 920 sq.m. each, and will pay $12 per sq.m.. The company was given the option to rent the 11th floor in the future.
In addition, SAP rented 420 parking spaces at a monthly rate of approximately $40 per space, plus the building lobby and related areas. SAP will move its new quarters in July 2004.
Up until now, SAP's facilities were located in different buildings in Raanana, Tel Aviv and Herzliya, along with a development center in Ramat HaHayal. The company employs 450 workers in Israel, and is represented locally by Ness Technologies.
SAP said that concentrating all its Israeli offices in one building was a positive step on the way towards accelerating activity in the Israeli market, and consolidating its stature as a leading enterprise solutions provider.
Published by Globes [online] - www.globes.co.il - on 14 October 2003