| By Polly Tal, Investing.com Israel
The Real Estate Property Company (TASE 🙂 announced on Sunday that it is selling the HSBC (HK 🙂 building in midtown Manhattan for $ 855 million to the New York real estate company Innovo Property Group, recording a net loss of $ 45 million.
The Israeli company, which is owned by Discount Investments (TASE 🙂 (63%), said that it also sold Beit Properties on Locksmith Street in Tel Aviv for NIS 390 million ($ 123 million).
Shares of Properties and Building are traded on the Tel Aviv Stock Exchange at a market value of about NIS 3 billion, after rising by about 35% since the beginning of the year. Today, after the announcement, the company’s stock fell 1.3%.
Doron Cohen, CEO of DKSH and Properties and Building, said that management is focusing on income-producing properties in Israel and that the amount it receives from the two transactions will allow it to advance this policy.
“We are continuing with the policy and are examining the possibility of realizing additional properties in the United States and Israel, including a Tivoli project located in the prestigious Summerlin neighborhood in Las Vegas,”
Cohen said, noting that the sale of the HSBC building came despite “gloomy” forecasts for the U.S. commercial real estate market.
The Tivoli project, an apartment complex in Las Vegas that opened this year, may be offered for sale as part of the company’s efforts to increase liquidity and reduce debt.
Together with Koor Industries, Properties and Benin, it purchased the 30-story, 80,000-square-meter HSBC tower for $ 353 million in 2009. In 2011, the company acquired Koor’s share in the tower, which occupied 99%.
Properties and Building reported that the value of the HSBC tower in the company’s books was $ 864 million as of September 30th. After deducting transaction costs, the company is expected to post a net loss of $ 45 million from the sale.
The sale is expected to be completed by April 1, 2022, subject to Innovo’s right to advance the date, while at the same time the company has the option to postpone the date for two periods of 30 days each.
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