Most of building leased to HSBC (archives)
Photo: Reuters
Koor to sell stake in HSBC building in NY
Israeli holding company agrees to turn over its 50% shares in Manhattan asset to sister company Property and Building for $138 million
Israeli holding company Koor Industries agreed to sell its 50% stake in the headquarters of HSBC Holdings HCS-PBnews in Manhattan for $138 million to its sister company Property and Building Corp., which owns the other half.
Koor and Property and Building agreed to acquire the Fifth Avenue building in late 2009 for $353 million. The deal closed in April 2010.
Most of the building is leased to HSBC under a 10-year contract, Koor and Property and Building, both subsidiaries of IDB Holding Corp, said on Sunday.
The building has existing external financing of $210 million. In addition to the $138 million in cash that Property will pay, it will also take on Koor's share of the debt - $105 million.
The deal is subject to approval by shareholders of both companies as well as the financing bank.
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