Sh I R Shlomo Real Estate has reported purchasing 26 dunam (6.5 acres) on separate lots in the Kiryat Matalon area on the Petah Tikva-Givat Shmuel municipal boundary for NIS 156 million. The land was purchased from ECI Telecom in a deal contingent on the acquisition of ECI by US company Ribbon Communications.
Sh I R estimates its costs in the deal at NIS 170 million. The buildings currently on the sites have a total of 8,000 square meters of space, while approved construction rights for offices total 85,000 square meters.
The company added that simultaneously with the purchase agreement, it had contracted a lease in which ECI would rent most of the space on the property, including all of the built-up space, until October 2023 at NIS 4 million in annual rent.
Sh I R chairman Israel Raif said that the deal reflected the company's plan to locate and buy attractive properties in large cities. The company is interested in properties with diverse business activity, transportation access, and potential for improvement. "We intend to increase the construction rights and expand the uses of the land, and to develop a lively central site with multiple uses, similar to the sites in the center of large and well-developed cities," Raif said.
Completion of the deal is contingent on completion of the acquisition of ECI by US company Ribbon by July 1, 2020. If the deal is not completed, Sh I R will have first refusal right to buy the property for a period stipulated in the agreement.
Adv. Hanoch Morgenstern and Adv. Yochy Dor from the Yaacov Salomon, Lipschutz & Co. law firm represented Sh I R in the deal, while Adv. Amir Chen and Adv. Michal Faktor from the Fischer Behar Chen Well Orion & Co. law firm represented ECI.
Sh I R is a private company controlled by the Schmeltzer family. The company was founded in 2007 in order to coordinate real estate business and find business opportunities in income-producing real estate and hotels in Israel and Europe, with an emphasis on Germany. Most of the company's properties in Israel are in the center of the country.
Published by Globes, Israel business news - en.globes.co.il - on February 4, 2020
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