Israel Postal Company expanding Modi’in online trade center

The Israel Postal Company is expanding its online trade center in Modi’in. The company has signed a lease with real estate company Mega Or on 30,000 square meters in the Modi’in industrial zone for offices and logistics space. This is in addition to the Israel Postal Company’s existing 13,000 square meter online trade center in Modi’in, also leased from Mega Or, which won a public tender 18 months ago.

The total of 43,000 square meters is leased for 25 years. The Israel Postal Company is paying monthly rent of NIS 35 per square meter for the ground level built space, NIS 17 per meter for the ground floor galleries, and NIS 38 per square meter for office space.

Leasing of the new space in Modi’in is part of an efficiency program introduced by CEO Danny Goldstein. The company will concentrate activity in Modi’in from several sites around Israel, including head offices in Tel Aviv and Jerusalem and its Tel Aviv national sorting office.

The online trade center in Modi’in was opened in April to deal with the huge growth in goods ordered from overseas. The center is capable of dealing with 100 million parcels a year. The expansion of the center will enable the development of additional logistics services for online commerce.

Mega Or has 32 income producing properties, some of which it owns in partnership with Rami Levy, owner of Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.; BIG, controlled by the Naftali brothers; and real estate investment trust Reit 1. The occupancy rate in the properties is 98%.