Real estate company Vitania Ltd. (TASE:VTNA.B1) has confirmed last week's report in "Globes" that, together with Carasso Real Estate, it is negotiating with Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) "on a long-term lease, on terms yet to be agreed between the parties, on 40,000 square meters of space and parking spots in a project that the companies plan to construct in Kiryat Arie, Petah Tikva." "Globes" revealed on Thursday that advanced talks were taking place on transferring Teva's headquarters to an office project to be built by Vitania and Carasso Real Estate.
Real estate market sources predict that the rent will be NIS 45-50 per square meter per month in shell condition. The lease periods are likely to be long - over 20 years (including options). Completion and occupation of the project is expected to take several years.
Teva recently conducted negotiations on construction of a new headquarters with Azrieli Group Ltd. (TASE: AZRG), which last month reported the purchase of 19 dunams (4.75 acres) on the eastern side of the Kiryat Arie industrial zone, near an office project that it already owns.
Teva had planned to build new offices in Ra'anana, but sold the land it bought in the city to Amdocs Ltd. (Nasdaq: DOX), as part of the steps it has taken to realize assets and cut expenditure in order to be able to service its $35 billion debt.
Teva now plans to keep its head offices in Petah Tikva, but on a new site. The new headquarters will bring together all the head office functions now spread over different sites in Petah Tikva, and will also house the company's special R&D activity.
Teva said in response, "Teva is working on finding the best possible solution for constructing its global headquarters in Petah Tikva, which will make the company more efficient and save costs. Teva is committed to creating a comfortable and advanced working environment, consistent with its organizational culture and guiding values."
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2017
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