Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), which previously planned to move its headquarters to Ra'anana, then sold the land it had bought there to Amdocs Ltd. (Nasdaq: DOX), now wants to move its headquarters to a different location in Petah Tikva. Teva is looking for a new site in the city to which it can move all its offices in the city, and later also its special R&D activity.
This was revealed by a letter sent by Teva's management to the company's employees, which stated, "The move to a single new headquarters is the right move for Teva and its employees in Israel. We are committed to having the new headquarters reflect our heritage, organizational culture, and guiding values."
As of now, Teva's headquarters are located on Basel Street in Petah Tikva, and the company is also active at several other sites in the city, including Daniv Park and the Kodak building. Teva is considering several sites in the city. Among other things, it is in initial negotiations with income-producing real estate company Azrieli Group Ltd. (TASE: AZRG), which yesterday reported that it had purchased 19 dunam (4.25 acres) in the eastern part of the Kiryat Arie industrial zone in Petah Tikva near the office project it already owns there. The price for the deal, which is slated for completion within two months, is NIS 91 million, plus VAT.
The land was purchased from real estate tycoon Amos Luzon and the Tidhar Group construction company. The sellers acquired the land only two years ago from Isralom, and made a NIS 35 million profit on their sale. Azrieli plans to utilize all the construction rights in the land by buildings 53,000 square meters in office space, in addition to the 20,000 square meters it has its the nearby office project.
For Teva, the sale of its land in Ra'anana only two years after buying it fits in with the company's need to sell assets and reduce its expenses in order to service its $35 billion debt. As part of the company's policy of streamlining and reducing its debt burden, Teva yesterday reported the completion of the sale of its women's health business.
Published by Globes [online], Israel Business News - www.globes-online.com - on September 19, 2017
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