Israeli real estate companies are expanding their foreign income-producing property portfolios. Alrov (Israel) Ltd. (TASE: ALRO), controlled by chairman Alfred Akirov, is expanding its hotel business in Europe, and Gazit-Globe Ltd. (TASE: GLOB), controlled by chairman Chaim Katzman, has bought another shopping center in the US.
Alrov unit Locka Holdings BV, held through subsidiary Alrov Properties and Lodgings Ltd. (TASE: ALRPR), yesterday signed an option agreement to acquire 100% of a company that owns a luxury hotel in Europe. The company provided no further details about the property or location.
Alrov Properties deposited €10 million in an escrow account, which will be returned if the company does not exercise the option to buy. The deposit gives Alrov exclusivity in buying the property.
Sources expect the total investment at €130-160 million.
In the US, Gazit Globe subsidiary Equity One Inc. (NYSE: EQY) has bought Veranda Shoppes shopping center in a Miami suburb, for $7 million. The 4,200-square meter shopping center is fully leased.
Equity One CEO Jeff Olson said, “With this acquisition, we continue to increase our market presence in south Florida while at the same time maximizing management and leasing efficiencies."
Alrov's share price fell 1.3% by early afternoon today to NIS 108.60, giving a market cap of NIS 1.5 billion, and Alrov Property's share price fell 1.8% to NIS 63, giving a market cap of NIS 1.3 billion. The shares of Gazit-Globe, Israel's largest public real estate company, were flat at NIS 38.30, giving a market cap of NIS 5.32 billion, and Equity One's share closed at $18.79 in New York yesterday, giving a market cap of $1.64 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on April 22, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010