The fast growing Israeli mobile distribution company ironSource is in talks with Hagag Group Real Estate Development Ltd. (TASE: HGG) for the leasing of at least 8,000 square meters of office space in the company’s Ha’arbaa Towers project, sources inform “Globes”.
The project, on Ha’arbaa Street in Tel Aviv, is adjacent to the Sarona complex. The company'semployees are currently spread out over three offices around Migdal Shalom in Tel Aviv's financial district.
Rental rates for the project of 35-story and 38-story towers are hovering around NIS 80-90 per square meter per month; ironSource is seeking to lease the offices for a period of five years, at an estimated cost of NIS 40-50 million over the term of the contract.
The project is expected to accept its first tenants within six months to a year.
Last September, ironSource bought app discovery startup Supersonic, in a deal worth an estimated $150 million in cash and shares. The merger expanded its workforce from 550 to 800. Since the company is continuing to expand and recruit employees, it decided to also expand its office space.
Beyond Tel Aviv, the mobile company has offices in New York, San Francisco, and Beijing.
The Ha’arbaa Towers, designed by Moshe Zur, are being built on a 1.5-acre plot and will house 92,000 square meters of offices, commercial spaces, coffee shops, and restaurants. In January, Hagag announced it did not expect any delay in the project despite the takeover of contractor Dori Construction by Amos Luzon or to require any significant new outlays on the project.
A Google partner
ironSource was founded in 2009 by CEO Tomer Bar Ze’ev and brothers Itay, Roi, and Eyal Milrad. It set out as a supplier and distributor of free applications, which became increasingly popular in the app age. Later, ironSource became a major Google partner and served translation firm Babylon by distributing its program. It also distributes other free security and computing infrastructure apps and games.
The Israeli startup then developed a platform which provides distribution, installation, and monetization solutions for the app world. The company handles more than 7 million installs a day for more than 70,000 mobile apps.
The company has only taken part in one round of funding; in September 2014 it raised $85 million from Tal Barnoach’s Disruptive fund, as well as several American investors, including Len Blavatnik through his firm Access Industries.
Hagag Group, controlled by brothers Tzachi and Ido, is a real estate developer currently trading at a market cap of NIS 356 million. As of the end of the third quarter of 2015, the company reported selling the rights to 30.5 office floors in the north tower of the project for NIS 560 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 10, 2016
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