Emblaze and SAP rent the two buildings up for sale. Ganden also wants to sell the adjacent empty lot.
Ganden Investments (1999) Ltd., controlled by Nochi Dankner, is negotiating to sell its rights in the Ganden Park in the Ra’anana industrial zone. Ganden owns 50% of two office buildings and 36,000 sq.m. in building rights for additional buildings on the adjacent lot. Electra Real Estate Ltd. (TASE:ELCRE) owns the other half of the existing buildings, but will presumably not exercise its first refusal rights.
Ganden is asking $30 million: $19 million for the two buildings leased to Emblaze Ltd. (LSE: BLZ) and SAP AG (NYSE; LSE: SAP; XETRA:SAPG), and $11 million for the adjacent 15-dunam (3.75-acre) empty lot. The buyer will have to pay $2 million in betterment tax.
Market opinion is divided about the attractiveness of the buildings. The larger 12,500-sq.m. building was leased to Emblaze in 2000 at $16 per sq.m. per month, index-linked in a ten-year lease. Emblaze has been reducing its activities, and has sublet large parts of the building. The smaller 6,000-sq.m. building is considered a better deal, since SAP, considered a stable and growing company, rented it last month at $13.60 per sq.m. per month, index-linked in a ten-year lease.
Published by Globes [online], Israel business news - www.globes.co.il - on February 5, 2006