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Eurocom to compensate Industrial Building NIS 20m for canceled Ofek lease

Market sources say phenomenon is increasing

Eurocom is to pay Industrial Building Corporation some NIS 20 million in compensation for the cancellation of now-defunct Ofek's lease, Ma'ariv reports.

Ofek, controlled by Eurocom, was closed down several months ago after the cancellation of teh LMDS tender to compete with Bezeq in local telephony. The firm was slated to rent 15,000 square meters from Industrial Building in two buildings in the Afek industrial park in Rosh Ha'ayin. Other tenants include Partner Communications (Nasdaq, TASE:PTNR, LSE:PCCD), Nokia (NYSE:NOK), Barak International Communications, and Ericsson (Nasdaq:ERICY).

Ma'ariv reported real-estate specialists see increased cancellation of rental deals with compensation to property owners due to the ongoing crisis in the technology sector.

Another such instance is the compensation that Lucent Technologies (NYSE:LU) recently paid Azorim Properties for canceling the Chromatis rental agreement in Petah Tikvah.

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