By Steven Scheer
JERUSALEM (Reuters) – Israel’s Real Estate and Construction Group said on Sunday it had agreed to sell its HSBC Tower building in midtown Manhattan for $855 million to real estate firm Innovo Property Group. based in New York, recorded a net loss of $45 million.
The Israeli company, which is 63 percent owned by Discount Investments, said it also sold property in Israel for 390 million shekels ($123 million).
Doron Cohen, managing director of both Real Estate and Buildings and Discounts, said management is focused on income-generating properties in Israel and the money they receive from both transactions will allow them to promote this policy.
“We are continuing our policy and looking at the possibility of additional properties in the US and Israel, noting that the HSBC building sale comes despite ‘gloomy’ predictions for the real estate market,” Cohen said. United States commercial real estate.
He cited Tivoli Village, a luxury apartment complex in Las Vegas opening this year, that could be up for sale as part of the company’s efforts to increase liquidity and reduce debt.
Together with Koor Industries, Property and Building, purchased the 30-storey HSBC Tower, measuring 80,000 square meters in 2009 for $353 million. In 2011, Property acquired Koor’s stake in the tower with an occupancy rate of 99%. HSBC bought the building in the 1990s.
Property and Building said the value of HSBC Towers on their books was $864 million as of September 30. After expenses, it said it would record a net loss of $45 million from the sale.
The sale is slated for completion on April 1, 2022 subject to Innovo’s rights to advance the date while also receiving options to defer completion twice, 30 days each.
The property said that after the sale, it will have a net cash flow of $343 million.
Its shares were 0.7% lower in afternoon trading in Tel Aviv.
(1 dollar = 3,1605 shekels)
(Reporting by Steven Scheer; Editing by Elaine Hardcastle)
https://wsau.com/2021/12/05/israeli-firm-to-sell-hsbc-tower-in-new-york-for-855-million/ Israeli company sells HSBC Building in New York for 855 million USD | WSAU News / Talk 550 AM · 99.9 FM