Motorola Israel Ltd. is moving most of its offices, including those of subsidiary MIRS Communications Ltd., to Airport City, near Ben Gurion Airport. Airport City Ltd. (TASE:ARPT) will build 48,000-square meter complex, plus parking and commercial space, for Motorola Israel over the next three years, to which Motorola Israel will move its 3,500 employees.
Airport City will provide the buildings in shell condition. Motorola Israel will occupy 38,000 sq.m. of the new complex and MIRS will occupy 10,000 sq.m., under leases for 24 years and 11 months, with an exit option after ten years. Rent will total NIS 33.2 million a year.
Motorola Israel has been headquartered on Kremenetski Street in Tel Aviv since it was founded in 1964. The company has an option to require Airport City to buy this property.
Motorola Israel general manager Elisha Yanay said, “Motorola Israel was the first company Motorola founded outside the US. This agreement again underscores the value that Motorola places on the achievements of its Israeli subsidiary. This is an award and a commitment by Motorola in Motorola Israel for the future.”
Airport City is controlled by JOEL Jerusalem Oil Exploration Ltd. (TASE: JOEL) and Equital Ltd. (TASE:EQTL).
Airport City covers 750 dunam (187.5 acres). The contract with Motorola Israel increases its leased space to 265,000 square meters out of a potential of 400,000 square meters of leasable space. Companies located at the high-tech currently employ 10,000 persons, which is expected to double in the coming years.
Published by Globes [online], Israel business news - www.globes.co.il - on September 16, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007