IDB group buys HSBC headquarters in New York
Koor Industries, Property and Building signdeal to acquire bank's center of operations in Manhattan for $330 million
Koor and Property and Building are both subsidiaries of Israeli holding company IDB Holding Corp, which had said on Saturday it was close to signing the deal.
The complex at 425 Fifth Avenue and 1 West 39th Street consists of two buildings, one 29 stories high and the other 12 stories with a total of 865,000 square feet (80,000 square meters).
HSBC, Europe's biggest bank, will remain the main tenant in the building for 10 years with an option to extend its lease.
IDB said it will receive $45 million in rental income in the first year while operating expenses will total $18.5 million.
'Taking advantage of business opportunities'
The purchase will be financed through the group's own resources, IDB said, adding that the property had strong potential, which would grow as the US economy recovers.
"The IDB group has been operating in recent years, alongside its holdings in leading properties in Israel, to diversify its investments abroad by taking advantage of business opportunities created by the global economic crisis," IDB said in a statement on Saturday.
Property and Building and its parent company are investors in Elad IDB Las Vegas LCC, which acquired a Las Vegas Strip site to build a $5 billion resort casino.
IDB is also the controlling shareholder in Cellcom Israel's largest mobile phone operator, and Shufersal, the country's biggest supermarket chain.
