Sources inform ''Globes'' that ECI Telecom Ltd. wants to sell its Petah Tikva headquarters for NIS 150 million in a sale and lease-back deal in long-term contract. The company has already contacted a number of insurance companies about a deal.
This is not the first time that ECI has sought to sell the building. Three months ago, it published a tender for the sale of all its properties for NIS 350 million. The tender included the headquarters, building rights on the same lot in Petah Tikva, and an additional lot in Givat Shmuel. The tender was closed in May after no bids were filed, apparently because the development aspects of the lands on offer were of no interest to insurance companies.
Following the failure, ECI decided to offer only its headquarters for sale. The five-storey building has 22,500 square meters of space and 135 parking spaces. ECI also rents space in an adjacent building, which is not part of the proposed sale, and the company will probably extend the lease.
Market sources said that, in the present offer, ECI approached the insurance companies with a financial deal that is less interesting for income producing real estate developers.
ECI is owned by Shaul Shani’s Swarth Group and Ashmore Investment Management Ltd. (LSE:ASHM).
Published by Globes [online], Israel business news - www.globes-online.com - on August 14, 2008
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