Creo (Ah..well, Ex-Scitex) and Amot Investments are negotiating a $45 million deal in which Amot will buy a 23,000 sq.m. building in Petah Tikva, Israel and grant Creo a long-term lease. According to the proposed deal, Amot will acquire a building, which will be constructed according to Creo’s specifications. Amot will lease the building to Creo under a 10-year contract, with a 10-year option. Creo will pay $15 per sq.m. per month. At the same time, Amot is also examining a deal in Hod Hasharon or Netanya area projects.

A Creo spokesman said in response that the company, currently located in Herzliya Pituah, is negotiating to rent 23,000 sq.m., but declined to provide further details.

 

Globes, Israel by Elazar Levin 26.03.2002 18:10

Amot Investments, Creo Products (Nasdaq: CREO), and Petah Tikva real estate developers are negotiating a $45 million deal.

 

Under the emerging deal, Amot will buy a 23,000 sq.m. building in Petah Tikva and grant Creo a long-term lease.

Negotiations are mostly with two groups: SGS-Shemen Industries and Feuchtwanger Investments. Each of the groups has a compound for the construction of tens of thousands of square meters in Kiryat Arie in Petah Tikva.

 

According to the proposed deal, Amot will acquire a building, which will be constructed according to Creo’s specifications. Amot will pay $45 million at $1,800-1,900 per sq.m.

Amot will then lease the building to Creo under a 10-year contract, with a 10-year option. Creo will pay $15 per sq.m. per month, index-linked. Amot will receive a 10% yield, considered very good under the current market conditions. Amot is very liquid at the moment, and is looking for such investments.

 

At the same time, Amot is also examining a deal in Hod Hasharon or Netanya area projects. If this deal goes through, it will the first of its kind in several years, as well as one of the largest in the field in Israel. A Creo spokesman said in response that the company, currently located in Herzliya Pituah, is negotiating to rent 23,000 sq.m., but declined to provide further details. Amot confirmed the details of the report.

 

Amot is owned by Histadrut labor federation pension funds and Gmul, which jointly hold 80%, while Bank Hapoalim owns 20%.

 

Published by Israel’s Business Arena on March 26, 2002