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Businessman David Azrieli
Photo: AP
Houston, Texas (archives)
Photo: AP

Azrieli to buy Houston office towers for $176M

Buildings, totaling 99,000 square meters, expected to provide Israel-based real estate developer's US subsidiary with rental income of $14 million in 2011

A US subsidiary of real estate developer Azrieli Group has agreed to buy three office towers in Houston, Texas, for $176 million, the Israeli company said on Sunday.

 

The buildings are 91% occupied and tenants include UBS, Bank of America Merrill Lynch, Citi, and large energy firms, Azrieli said in a statement to the Tel Aviv Stock Exchange.

 

The buildings, totaling 99,000 square meters (1.07 million square feet), are expected to provide rental income of $14 million in 2011.

 

The US subsidiary Three Galleria Office Buildings, in which Azrieli owns 90%, is a special purpose entity that will deal only with managing and developing the acquired office buildings. The owners of the property's management firm hold the other 10%.

 

Three Galleria received a commitment for a $130 million 10-year loan from an American financial institution.

 

The buildings in Houston will serve as collateral for the loan and the rest of the funding for the purchase will come from Three Galleria's own resources.

 

The agreement is expected to be completed within five weeks.

 

Azrieli Group, which is controlled by Canadian businessman David Azrieli, did not name the seller of the property.

 

Azrieli Group in June raised over NIS 2.5 billion ($680 million) in what was Israel's largest initial public offering by a private company on the Tel Aviv Stock Exchange.

 

 


פרסום ראשון: 02.01.11, 08:04
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