Israeli real estate developer Vitania (TASE: VTNA) has notified the Tel Aviv Stock Exchange that it has signed an agreement with a company owned by tech entrepreneur Benny Landa to buy land and develop a project in the Ness Ziona Science Park. Vitania will pay NIS 35 million plus VAT, which it will finance from its own resources.
Vitania is buying half of a 14,000 square meter lot and has signed a joint agreement with Landa to develop, build and operate a building with 38,600 square meters of space for offices, laboratories, and production plants, as well as 23,400 square meters for two floors of underground parking and other uses.
The project will cost NIS 320 million to build and Vitania will pay 50% of the costs. Completion of the deal is subject to bank financing which will be agreed by both parties. Construction will be managed by Vitania unit SGS.
The agreement also includes a 15-year leasing agreement to Benny Landa's Landa Labs including 1,000 square meters for offices, 8,000 square meters for laboratories, 4,800 square meters for a production plant, 1,500 square meters of balconies and patios, and 200 parking spaces. The monthly lease is NIS 1.05 million plus VAT, linked to the cost-of-living.
Vitania CEO Ofer Ziv said, "This is a complex deal that arranges every aspect of building the project from buying the land, through construction, joint management and on to leasing part of the space to Landa's company."
He added, "The Ness Ziona Science Park is one of the oldest and largest high-tech parks in the country. It has high demand and houses companies like HP, Elbit Systems and Applied Materials. It is close to academic institutions such as the Weizmann Institute of Science, and the Institute of Biological Research as well as the railway station.
Published by Globes, Israel business news - en.globes.co.il - on April 20, 2021
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