Samsung leases six floors in Tel Aviv's Azrieli Town

Azrieli Town  / Imagin: PR

The project will include a 35-floor, 50,000-square meter office building next to a 50-floor, 21,000-square meter residential tower with 212 apartments.

Korean tech giant Samsung's management in Israel has signed a long-term lease with Israeli income-producing property company Azrieli Group Ltd. (TASE: AZRG), which is building the Azrieli Town project in Tel Aviv. Samsung leased six floors with 9,000 square meters at NIS 120-140 per square meter.

The Azrieli Town project, located between Menachem Begin Boulevard and the Ayalon Highway, is part of Tel Aviv's northern business center - a string of high-rises stretching from Azrieli Towers in the south to Arlosorov Towers in the north. The project will include a 35-floor, 50,000-square meter office building next to a 50-floor, 21,000-square meter residential tower with 212 apartments. The project will also have 2,000 square meters of commercial space and an underground parking lot with 1,300 parking spaces. The land for the project, located next to the Midtown project in Tel Aviv, was purchased in 2012 from Clalit Health Services, which operated there for many years.

In its report for the second quarter of 2019, Azrieli Group wrote that construction of the project had begun in 2016, and that the company "is taking action to change the urban building plan by increasing the construction rights for the site. A discussion of the objections took place at the Local Planning and Building Commission in May 2019 with respect to 24,000 square meters in additional gross business and hotel space. The commission discussed the objections and decided to approve publication of the plan for making it valid. In July 2019, an appeal was filed against the plan, and a hearing was scheduled for November 2019." Azrieli also wrote that as of the report's publication, "The group signed agreements to rent out nearly 100% of the office space in the project."

Azrieli Group previously reported, "Tenants who will occupy the office tower include shared workspaces giant WeWork, which leased 15,000 square meters on nine floors; the Fischer Behar Chen Well Orion & Co. law firm, which leased 10,000 square meters on seven floors; and Kesselman and Kesselman - PwC, one of the world's largest accounting firms, which leased 16,000 square meters."

Azrieli did not respond to the report.

Published by Globes, Israel business news - en.globes.co.il - on August 22, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Azrieli Town  / Imagin: PR
Azrieli Town / Imagin: PR
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