The demand of the Ashdod municipality is divided so that for storage and service areas of 13.9 thousand square meters IKEA will be required to pay NIS 1.53 million per year, and for 10.9 thousand square meters of commercial and office space another NIS 3.54 million, i.e. a sum of NIS 5.07 million per year. At IKEA, they are not used to such significant amounts, when at the flagship branch in Netanya, they only pay about NIS 80 per square meter.
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IKEA announced that at the offered prices it is not possible to open the branch, and this after the month of April, Ari Real Estate reported that one of the holders of the Ashdod Holders Company (which controls 72% of the designated land), signed a memorandum of intent to sell half of the Ashdod Holders’ shares to Roni Biram’s JTLV fund and Ariel Rutter, and to the Bronfman Fisher Group, an IKEA franchisee in Israel, for NIS 226 million.