Sources inform "Globes" that the WeWork group, which builds and manages shared workspaces in Israel and worldwide, has signed a lease for three floors with a total of 5,000 sq.m. in the Midtown project in Tel Aviv.
The three floors are in the upper part of the 50-storey tower, on which construction is in the advanced stages. The sources added that the lease was for 15 years, with rent totaling NIS 85 million, reflecting monthly rent of NIS 95 per sq.m. and annual rent of NIS 5.6 million for the entire space.
In 2014, when the tower was in the initial construction stages, Ernst & Young signed a huge deal to buy 21 of the tower's 50 floors from the developers. The price was NIS 342 million plus VAT. The space sold in this deal totaled 34,000 sq.m., including 475 underground parking spaces and 584 sq.m. of storage space.
The Midtown tower is a joint project of Israel Canada ITR) Ltd. (TASE:ISCN), Electra Ltd. (TASE: ELTR), and Eurocom Group. It includes a 75,000-sq.m. office tower, a residential high-rise with 336 apartments, and a 17,500-sq.m. commercial center. The land element of the project is estimated at NIS 2.5 billion. The project is located in Tel Aviv's main northern business district, and is accessible to focuses of mass transit, such as the Hashalom and Arlosorov railway stations. It is close to a future station of the Tel Aviv light rail red line. Occupancy is slated for the first quarter of 2018.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 15, 2017
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