After 22 years in Givatayim, Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) mobile phone unit Pelephone Communications Ltd. is leaving its offices in Pelephone House, owned by Amot Investments, close to Vered House, and moving to offices in Ofer Park in Petah Tikva. Pelephone's current offices cover 15,000 square meters. Company management yesterday notified the employees that Pelephone's lease in the building expires at the end of 2020.
Pelephone's move is part of its strategy for cutting costs, in view of the state of the communications market. Pelephone is the only Bezeq subsidiary moving office; Bezeq International and Yes are remaining in their offices in Petah Tikva and Kfar Saba, respectively, for the moment, but parent company Bezeq will soon leave Azrieli Towers in Tel Aviv and move to Azrieli Center in Holon. Pelephone, Bezeq International, and Yes are part of Bezeq's consolidation of its subsidiaries' activity under one management.
Pelephone has rented 10 floors in the Dekel building in Ofer Park 1, one of two business parks in Petah Tikvah. The lease was signed with Melisron Ltd. (TASE: MLSR), controlled by the Liora Ofer group. Pelephone will enter offices vacated by Intel, which is moving to a new site being built by the company.
Pelephone's management says, "In the past 18 months, lengthy negotiations conducted with the current landlord, who gave us excellent service for many years, were unsuccessful, and we therefore searched for other alternatives." The employees were told that a senior professional team has been looking for over six months for a property that would satisfy all of the organization and business needs of the company and its employees, and that the company would therefore move its offices to the site in Ofer Park.
In selecting the property, Pelephone's management says, it looked for an opportunity to improve the company's work environment. It said that Ofer Park was an advanced technology site occupied by international technology companies and startups. "Upgrading the work environment will be reflected in various profit aspects, such as restaurant services, transport and parking, and proximity to a variety of complementary services, such as convenience stores, a barber, and a synagogue. It is obvious to all of us that leaving a home always arouses mixed feelings. Nevertheless, the move gives us an opportunity to refresh and improve the work environment," Pelephone's message stated.
Amot said, "Pelephone had a historic agreement for 22 years. Its leaving constitutes an opportunity for us to maximize rent from this property. We are confident that the building's attractive location and its many parking places will attract diverse relevant tenants. In our opinion, these features, combined with the renovation that we are planning for the property, will enable us to raise the rent by over 60%. We wish Pelephone success in its new home."
Published by Globes, Israel business news - en.globes.co.il - on September 2, 2019
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