Six months after Fattal Holdings (1998) Ltd. (TASE:FTAL) announced that it would enter the co-working space sector, the company has completed a deal to rent 3,500 square meters in the northern Ra'anana industrial zone to set up a co-working space facility. The 10-floor office building, A Tower, is being built by Acro Real Estate at 5 Tidhar Street, with occupancy slated for 2019.
Fattal is renting the two floors in the new tower, which also contains a commercial area on the ground floor. Rent in the deal will be NIS 60-65 per square meter per month in shell condition and 80 parking spaces at NIS 450 per square meter per month. Fattal plans to market the co-working space to entrepreneurs, members of the liberal professions, small businesses, and startups.
Workspaces next to a hotel
Last August, Fattal Holdings, controlled by businessperson David Fattal, announced its plan to enter the co-working space sector in Israel and abroad, with an emphasis on locations adjacent to the chain's hotels. The hotels' services will provide added value in food and health, for example, for the nearby workspaces. Fattal Holdings completed its first co-working space deal a month ago in Tel Aviv, renting two floors with 1,400 square meters in Amot Insurance House on Begin Road, less than half of the space rented in the current deal. Amot Insurance House is in the same complex as Fattal Holdings' NYX Hotel, which is also rented from Amot under a long-term lease. The Ra'anana deal is the first one in which Fattal Holdings is renting an independent site for co-working space without one of the chain's hotels being nearby. Fattal co-working spaces CEO Ron Yariv led the deal, with assistance from Raanana municipality head of business administration Roee Dinovich.
The project in which Fattal will operate in Ra'anana is adjacent to Highway 4, Highway 531, Kfar Saba-northern Ra'anana Junction, and the recently opened railway station in Ra'anana. A Tower is in the advanced construction stages and is slated for occupancy in the coming months. The 18,000-square meter project includes a commercial floor with 10 office floors above it and an underground parking lot with space for 500 vehicles. A typical floor in the building has 1,723 square meters in gross space. The performance contractor for the project is Afcon, which is part of the Schmeltzer group. Sources inform "Globes" that another tenant in the building is the Stark & Stark accounting firm owned by Moshe Stark, CPA, and Iris Stark, CPA, who was recently appointed president of the Institute of Certified Public Accountants in Israel. Stark & Stark rented one floor in the building.
Tel Aviv and all the other cities
A check by "Globes" revealed that only one other co-working space operates in Ra'anana - that of Regus, which currently has 17 branches in Israel. WeWork currently has 11 branches of co-working space, and is scheduled to open the largest co-working space in Israel one month from now. The new branch will be opened in the ToHa project, owned by Amot Investments Ltd. (TASE:AMOT) and Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1), at 6 Totzeret Haaretz Street in Tel Aviv. WeWork is the largest tenant in the ToHa project, with six floors in the building. "Globes" also discovered that prominent players operate 32 co-working spaces in Tel Aviv, six in Herzliya, and three in Haifa.
Published by Globes, Israel business news - en.globes.co.il - on January 9, 2019
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