Income producing real estate companies Amot Investments Ltd. (TASE:AMOT) and Bayside Land Corp. Ltd. (Gav Yam) (TASE:BYSD1), which are currently constructing the ToHa2 tower in Tel Aviv, have officially announced the signing of an agreement with Google for the lease of 60,000 square meters in the tower for NIS 155 million annually. The agreement is for ten years. "Globes" first reported negotiations on the agreement in October 2022.
The ToHa2 tower is under construction overlooking the Ayalon Highway at the junction of Totzeret Ha’aretz Street, Yigal Alon Street, and Hashalom Road in Tel Aviv. It will be 300 meters high, with 77 floors, and extend over 170,000 square meters.
Amot Investments and Bayside Land Corp. are together investing NIS 3 billion in the project. The companies say that 40% of the skeleton work is complete, and that they expect approval for occupancy in 2026.
The agreement with Google is for ten years from January 2027. Google has a one-time escape clause from the agreement after five years.
According to information supplied by the companies in the past, each floor of the tower will be 2,500-3,000 square meters in area, which means that Google is leasing 20 floors.
Sources familiar with the matter say that Google considered two planned towers as its future home: ToHa2, and the Spiral Tower being constructed by Azrieli Group, but eventually decided on the former.
Google currently leases nine floors in the Ampa Tower (formerly the Electra Tower), not far from the ToHa2 site.
Published by Globes, Israel business news - en.globes.co.il - on June 25, 2024.
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