Israeli high tech company Mellanox Technologies Ltd. (Nasdaq:MLNX) is set to move its Tel Aviv offices to a site on Yitzhak Sadeh Street near Beit Maariv. In a report to Nasdaq, Mellanox said that it had contracted an agreement with income producing real estate company Rubinstein, owned by Gil Rubinstein. Under the agreement, Mellanox will rent 18 floors in one of the towers being constructed by Rubinstein on the site. The rented areas include 18,760 square meters of office space, service space, and 350 parking places. Each floor in the tower has 1,200 square meters, making the tower's total office and service space 21,600 square meters.
The report to Nasdaq stated that Mellanox would pay NIS 52 per square meter in shell condition and NIS 800 per parking space. Assuming that Mellanox adds NIS 25 per square meter to adapt the offices to its needs, the total rent will amount to an estimated NIS 1.94 million a month, including parking spaces, or NIS 23.3 million a year. Mellanox has a 10-year lease with an option for a 10-year extension.
Rubinstein, which has owned the Yitzhak Sadeh site for years, is building two office towers on it with 33 storeys each. Occupancy is scheduled for 2020. Law firm Herzog, Fox & Neeman has rented 15,000 square meters in the second tower, and is scheduled to move its offices there from the Amot Building at 2 Weizmann Street.
The two towers are the first of 12 planned for the site. 75% of the space in the towers will be offices, and the rest residences.
Mellanox's current offices are in the Ramat Hahayal business area in Tel Aviv. The company is likely to move its offices to the Yitzhak Sadeh tower, following other high-tech companies that have left Ramat Hahayal for more up-to-date business areas, such as Comverse Inc. (Nasdaq: CNSI), which moved its offices from Habarzel Street in Ramat Hahayal to the Ra'anana industrial zone.
Published by Globes [online], Israel Business News - www.globes-online.com - on April 12, 2017
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