Microsoft to rent NIS 1b campus in Herzliya

Microsoft

Microsoft Israel will rent 45,000 square meters of office space over 15 years.

Microsoft Israel is to set up its new campus in the Herzliya Industrial Zone. For this purpose it will sign rental contracts with Canada-Israel, Tidhar and Akro Real Estate.

Microsoft Israel will rent 45,000 square meters of office space over 15 years. The lease will require the formal approval of the US parent company. The cost will be about NIS 70 per square meter per month so that Microsoft will need to pay about NIS 3.5 million per month for rent including parking space.

Six months ago Microsoft Israel published a tender for a campus that would merge its existing operations around Israel. In addition to the winning bids in Herzliya, Microsoft was offered the Tozeret Haaretz complex in central Tel Aviv by Bayside Land Corp. Ltd.(Gav Yam) (TASE: BYSD1) and Amot Investments Ltd. (TASE:AMOT). That bid included the construction of two high-rises of 70 and 30 floors covering 150,000 square meters.

At present, Microsoft Israel's operations are spread over a number of buildings in Herzliya Pituach and Ra'anana. All the Herzliya offices will merge into the new campus but it remains unclear if the new campus will include the Ra'anana operations.

Earthworks for the foundations of the new building are already underway. The new campus will encompass 10-floors, each with 4,000 square meters and will be built according to US green building standards. There will also be 1,000 parking spaces, parking for bicycles, dining facilities, fitness rooms and much more. The cost of construction will be NIS 1 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on December 11, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016 . .

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