Azrieli Group Ltd. (TASE: AZRG) recently signed a lease with international financial services group Citi, which will rent 3,000 sq.m. on one of the lower floors of the Azrieli Sarona tower. The deal, which includes 35 parking spaces, is estimated at NIS 35 million over 10 years. Citi will leave its offices on Ha'arba'a Street, which include three floors in the Platinum tower and half a floor in a nearby building, and move its activity, including business and investment banking, its market division, operational services, securities, and services for international companies, to the new site. Citi Innovation Lab TLV will remain in its location in Kiryat Atidim.
Azrieli marketing manager Merav Shlomovitch Barak, Man Properties head of global corporate services Smadar Michaelov, and senior manager brokerage services Hana Waingold led the deal. The Herzog, Fox, & Ne'eman law firm represented Azrieli, and the Meitar Liquornik Geva Leshem Tal law firm represented Citi.
Occupation of the project, currently under construction at an investment of NIS 1.5 billion, is slated for this July. The tower contains 61 floors above a shopping mall, and rises to a height of 255 meters. The tower has more floor space than any other current office tower in Tel Aviv - 2,400 square meters per floor. The tower will contain a total of 118,000 square meters of office space to be constructed above an 11,000-square meter shopping mall. Marketing of the space is taking place right now.
In addition to Citi, the Azrieli group has signed leases totaling 75,000 square meters. Tenants include the Pearl Cohen Zedek Latzer Baratz law firm, which rented two floors with 4,700 square meters; international company Regus - 2,400 square meters, Sentinel Labs - two floors with 4,800 square meters, Royalfield - 9,200 square meters , Safecharge - 3,500 square meters, SimilarWeb - 4,800 square meters, and more.
Azrieli says that the space leased and deals on the verge of being signed amount to 95% of the rental office space in the tower. The leases are for periods of 7-20 years with options, and also include the leasing of parking lots in the tower's 1,300-space underground parking lot. The average rent in the Azrieli Sarona tower is NIS 120 per square meter in finished condition.
Published by Globes [online], Israel Business News - www.globes-online.com - on June 12, 2017
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