Olympia Real Estate Holdings is in advanced negotiations to buy eight dunam (two acres) in Nes Ziona, on the boundary with Rehovot, from Aspen Building and Development for $3.75 million, at $470,000 per dunam ($1,880,000 per acre). The plot is zoned for 8,000 sq.m. of main space office and high-tech construction.
The plot is part of a larger 13.5-dunam (3.375-acre) plot, formerly owned by Aspen. Two years ago, Aspen sold Olympia 5.5 dunam (1.375 acres) for $2.6 million, at $520,000 per dunam ($2,080,000 per acre). Olympia is now completing its purchase of the compound, in order to construct office and high-tech buildings with 13,500 sq.m. of main space, which amounts to 16,000-17,000 sq.m. of total space.
A comparison of the two deals shows that the price of land zoned for these purposes has fallen by only 10% in the past two years. The main reason is probably that Nes Ziona has become a biotechnology center, and the recession has not affected this office real estate sub-sector.
The owners of Olympia are a group of developer, headed by Oscar Katznelson and Yossi Bar. Eliezer Fishman, the controlling shareholder in “Globes”, owns Aspen.
Published by Globes [online] - www.globes.co.il - on December 10, 2003