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Assuta Medical Centers, Israel's largest private medical provider, will move from its central Tel Aviv location to a new compound in Ramat Hahayal on the northern outskirts of the city.

The hospital, which has been looking for a new location since 2000, will invest about $50 million for a five-story building slated to be ready for occupancy by May 2007.

The new medical facility will include 16 operating rooms, hotel-class hospital rooms that overlook gardens, and a parking garage with 1,200 spaces. The lack of parking facilities is a major problem at the hospital's current location on Jabotinsky Street.

The new hospital will be built on property owned by Zikit, a real estate company held by Ocif Investments & Development and Alony-Hetz. According to an agreement initialed yesterday, Assuta will lease the land for 25 years at an annual price of about $7 million (plus VAT).

Assuta has prepared a detailed, two-stage plan for 34,000 square meters of construction on the 30-dunam plot. At the first stage, 20,000 square meters will be constructed.

Zikit has now leased most of the property it owns on Habarzel St. in Ramat Hahayal. The company will collect annual rent of some $12 million from these properties, including areas leased to BMC Software and other firms.

Before deciding on the Ramat Hahayal location, Assuta also considered other sites in Hod Hasharon, Bnei Brak and Ramat Hasharon.