Gazit-Globe Ltd. (TASE:GLOB) has announced that US subsidiary Royal Senior Care LLC has bought two assisted living facilities in Atlanta, Georgia, for $40 million.
One property has 205 units in a 15,000-sq.m. facility on a 15.75-acre lot. The other has 137 units in a 13,000-sq.m. facility on a 11.25-acre lot. The properties are located in areas with very high growth rates and family incomes above the Georgia average.
Royal Senior Care predicts a return on investment of 8.5% (before leverage) on the basis of the properties’ current occupancy rates and rents.
Royal Senior Care is owned in equal shares by Gazit-Globe and a local investor with great experience in building and managing assisted living facilities. Royal Senior Care own 860 units in the US southeast.
Gazit-Globe is Israel’s largest income-producing property company. Included on the Tel Aviv 100 index, it has a market cap of NIS 2.8 billion. The company develops and manages income-producing properties directly or through subsidiaries. It focuses on supermarket-anchored open commercial centers. Gazit-Globe owns 318 commercial properties, including 300 active commercial centers, ten commercial centers under construction, seven assisted living facilities with 860 units, and an office building in Tel Aviv. The properties have 3.2 million sq.m. of leased space altogether, generating over NIS 2.1 billion in rent a year.
Gazit-Globe is the largest shareholder in Finland’s Citycon (HEX:CTY1S) with a 37.5% stake. Citycon owns 145 commercial buildings and centers across Finland. Gazit-Globe’s US real estate investment trust (REIT), Equity One Inc. (NYSE:EQY), owns commercial centers, and its Canadian REIT, First Capital Realty Inc. (TSX:FCR) was the first publicly traded REIT on the Toronto Stock Exchange.
Gazit-Globe’s owns assisted living facilities in Georgia, Florida and South Carolina through Royal Senior Care.
Published by Globes [online], Israel business news - www.globes.co.il - on September 13, 2005