Working from home because of Corona? A large office transaction during the Corona crisis Technology giant Apple will rent office space from yielding real estate company Gav Yam at Matam Park in Haifa for 7 years (with an option to extend) in consideration of ~30M NIS per year.
According to Gav Yam’s report to the stock exchange today (Tuesday), it signed a rental agreement with an international hi-tech company for 28,000m² above ground and ~620 underground parking spaces. The company will rent the entire first stage of the new project currently being constructed at Matam Park – Matam Towers East.
The report further reveals that the rental period will begin after the first stage of the project is completed, expected during Q3/2022. The agreement was signed following an LOI signed between the parties in Q2 this year.
The report stated: “Gav Yam Bayside Land Corp. Ltd. (“the Company”) respectfully updates that, on 16 November 2020, the subsidiary, Matam – Haifa Scientific Industries Center Ltd. (“Matam”) – signed a rental agreement with a leading international hi-tech company (“the Tenant”) toward renting 28,000m² above ground and ~620 underground parking spaces at Matam Park Haifa (“the Rental Agreement”).
A real estate professional told ynet that it is among the largest office rental transactions in Israel in recent years and in general, especially since the Corona crisis began.
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The Matam Towers East project includes two structures above ground of ~56,000m² and underground parking of 37,000m². It was designed by Yashar Architects. In Q3/2020, Matam rented ~6,000m² and 120 parking spaces in the project to GE Healthcare, which will use it both for offices and a development center including labs. Matam Park covers over 300,000m² and serves R&D centers for other international hi-tech companies, such as Amazon, Intel, Microsoft, Google and more.
Apple currently rents offices from Gav Yam at Gav Yam Park Herzeliya Pituach: Gav Yam reports for 2014-2015 reveal that, in 2014, Apple rented all of the office space in the eastern building of Gav YamO2 in Herzeliya Pituach North, covering a total of 12,500m². In 2015, Gav Yam reported that it had completed the western building in the project, covering 16,500m², of which Apple exercised its option and rented 7 floors. It has been over 5 years since then and if there were additional spaces, they were not reported.
Gav Yam’s spokesperson released: “We will not comment beyond the report to the stock exchange”.
Haifa Mayor, Einat Kalish Rotem, stated: “The technology giant stands by global hi-tech leaders and expresses its confidence in Haifa. Apple’s expansion in the city correlates with the municipality’s efforts to develop hi-tech industries as an important economic anchor and major source of employment and quality income for thousands of Haifa residents.
Adv. David Etzioni, Chairperson of the Haifa Economic Company, added: “We welcome Apple in choosing Haifa And Matam Park. We have the most diverse ecosystem in Israel and this is the way to attract young people to work in the city. This is a great achievement for Haifa, which offers many opportunities and the fact that it is happening with Corona in the background, is encouraging and important, demonstrating that Haifa has the robust foundation for economic enhancement”.