Palo Alto Networks leases 4 floors in Tel Aviv tower

Alon Towers Photo: Amir Meiri

The company will pay NIS 7.8 million annually for 6,000 square meters in the Allon Towers project.

US cyber and information security company Palo Alto Networks has signed a lease to rent space in the Allon Towers project on Yigal Allon Streeet in Tel Aviv from Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). Sources inform "Globes" that the company has rented four floors with a gross total of 6,000 square meters, plus dozens of parking places at NIS 950 per space. Palo Alto will pay a total of NIS 650,000 a month, amounting to NIS 7.8 million a year.

A year ago, Migdal and Harel leased 10,000 in space to Shoval Management and Investments, owned by Ness Shoval, at NIS 1.1 million a month. Rents in the towers are in the NIS 90-110 per square meter range. The tower is scheduled for occupancy in September 2017.

The Allon Towers project consists of two 40-storey towers on Yigal Allon Street near the Electra Tower and the Hashalom Railway Station filling station. BSR Europe (TASE: BSR), controlled by Nachson Kivity, which exercised its option to buy the land on which a Haargaz plant owned by Hagai Shalom was formerly located, initiated the project. The project includes 110,000 square meters of office space in two towers, 6,000 square meters in commercial space, and 2,400 parking places.

The members of the buyers group are Harel and Migdal, which bought the rights to construct the Allon 1 northern tower with 55,000 square meters of office space and commercial space. The Allon 2 southern tower is being built by BSR through a buyers group of 130 members, most of them members of the liberal professions.

Former Check Point Software Technologies Ltd. (Nasdaq: CHKP) employee Nir Zuk founded Palo Alto in 2005. The company has been listed on Nasdaq since 2012. The company headquarters are located in the US, and it has 4,000 employees worldwide, including 160 in Israel, where the company research and development center is located (in Tel Aviv) – Palo Alto's only R&D center outside the US.

Published by Globes [online], Israel Business News - www.globes-online.com - on May 14, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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Alon Towers Photo: Amir Meiri
Alon Towers Photo: Amir Meiri
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