Vitania Ltd. (TASE:VTNA.B1, together with its partners, has signed two leases with Verint Systems Inc. (Nasdaq: VRNT) for two projects on Maskit St. in Herzliya Pituah. Rent in the leases amounts to NIS 320 million over a 12-year period.
The first agreement, which amounts to NIS 16.5 million a year, is an extension of Verint's current lease for a building at 33 Maskit St. until 2025. The lease involves 16,000 sq.m., including 600 parking spaces. The value of the extension is NIS 165 million.
The second agreement is for a building that Vitania is constructing in cooperation with the original landowners, Fedco, at 12-14 Maskit St. Under the agreement, Verint will rent 11,000 sq.m. in the building, including a dining room and kitchen on the rear ground floor, underground warehouses, and 320 parking spaces. The lease is for 12 years, amounting to NIS 13 million a year, i.e. a total of NIS 156 million, with occupancy scheduled to begin in February 2016.
Vitania chairman Ehud Samsonov, who led the negotiations for the deal, said, "Verint is one of Israel's most successful high-tech companies, and I'm glad that it is expanding to additional office space in our projects on Maskit St. At the same time, Vitania has also begun to lease additional storage space in the building."
Vitania is currently striving to obtain additional rights in the building at 33 Maskit St. in an urban building plan under the authority of the Local Planning and Building Commission. The additional space planned in the building is also earmarked for leasing to Verint in the future.
The owners of Vitania include Samsonov, the Samia family, brothers Dan and Gad Propper, Gitam Image Systems, Hamama Brothers & Co., Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), and Flying Cargo. The company's projects include Ziviel House on Habarzel St. in Ramat Hahayal, Amatzur House on Hasadnaot St. in Herzliya Pituah, Terminal Park in the southern Or Yehuda industrial zone, The Mill lot in Neve Tzedek in Tel Aviv, and others.
Published by Globes [online], Israel business news - www.globes-online.com - on September 8, 2015
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