The major real estate project of Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA) in Ra'anana is underway. As reported exclusively in "Globes," Teva bought land in Ra'anana for its planned new headquarters, and will relocate its operations, currently dispersed among a number of sites, mainly in Petah Tikva, but also in Netanya and Rehovot, to the new site. Several weeks ago, "Globes" reported that Electra Ltd. (TASE: ELTR) and Tidhar had submitted a joint bid against Minrav Holdings Ltd. (TASE: MNRV). Teva yesterday announced that it had selected Electra and Tidhar for the project.
"At the end of the procedure, in which several development companies competed in cooperation with local and international firms of architects, Tidhar and Electra were selected, together with architectsBjarke Ingels Group (BIG) and Moshe Tzur, to build the company's global headquarters in the Ra'anana industrial zone," Teva announced. Teva said construction would take four years, and that the building would accommodate 3,000 employees.
Teva said that the bids had been evaluated according to three qualitative and quantitative criteria. "The design was examined by a team of professors of architecture and design from universities around the world with great experience in judging architectural competitions, but company management made the final decision," Teva stated.
Electra, whose market cap is NIS 1.8 billion, today notified the TASE of its win, adding financial particulars. Electra said that its wholly-owned subsidiary, in cooperation with a third party (Tidhar), had won the tender to design and build the Teva campus in Ra'anana, and to maintain it for 10 years after construction is completed. The project, to be divided equally between Electra and Tidhar, is worth NIS 1.2 billion according to Electra's announcement. The profit margin on the project is expected to be in line with the usual low margins in the sector: 6-8% gross profit and 3-5% net profit. The Electra share was up 2% in today's TASE trading.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2016
© Copyright of Globes Publisher Itonut (1983) Ltd. 2016