The Reality Fund has signed an agreement for the sale of a land division in the industrial area in Kiryat Arie in Petah Tikva to the company
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. The scope of the transaction is approximately NIS 126 million, to which approximately NIS 14 million will be added, subject to future arrangements between the parties. The payment of the consideration will at this stage be financed from Aspen’s own sources, and later through a loan from the banks, the stock exchange reported.
The land covers an area of about 15 dunams, on which is built a storage, cooling and distribution structure of the Zoglowek company in an area of about 4,000 square meters. The remaining lease period is 9 years, under an annual rent of about half a million shekels before VAT . On the side of the building is a 4-story office building with a total area of about 1,700 square meters and an occupancy rate of only 50%. The average rental period remaining in the existing contracts is 9 years as well, with an annual rent of about NIS 4.5 million.
Aspen also reports that the area has about 35,000 square meters of unused approved building rights for industrial, warehousing, employment and commercial uses. The southern part of the land, which combines offices, about 50 parking lots and storage areas.
If the contacts between Reality and the same tenant reach an agreement, Aspen will pay Reality the same additional NIS 14 million. If the plan does not materialize, Aspen will still have to pay NIS 2 million to reality to initiate it. The estimated investment cost of the new building is NIS 55 million, Aspen will be the one to provide the financing, and she estimates that this building will generate an annual rent of about NIS 5.3 million. In addition, there is additional potential for land improvement by increasing the building rights to about 600%, in accordance with the outline plan promoted in Kiryat Arie.
This is the second property that Reality has sold in the past year in Petah Tikva, when in June this year the fund sold the property of Kikar Hatarbut in the city to Zim Behari. On Aspen’s part, she has just had another deal that also included activities in the field of logistics – these are contacts for the preparation of businessman Teddy Sagi as a partner with 25% in the European subsidiary. As part of the contacts, there is talk of a mistake in purchasing a logistics center for NIS 66 million and renting it out again. The annual income from that property is NIS 3 million, and in an interview with BizPortal, Poppy said, “We really want this deal, logistics is an excellent sector.”
Dan Menachem, Partner in the Reality Fund: “The development of the complex is promoted by the foundation in full cooperation with the municipality and its municipal contribution is very significant. The municipality of Petah Tikva is an excellent partner who works closely with us to improve and upgrade old areas with great potential for improvement.”
Scout Harel, CEO of Aspen Group: “The current deal continues the company’s strategy to expand Aspen’s operations in Israel in the office and logistics market. This is a very significant land division in Petah Tikva that includes a logistics property leased to Zoglowek as well as approved building rights that will allow significant improvement potential.”
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