Azrieli Group Ltd. (TASE: AZRG) has bought the Galleria Financial Center in Houston for $176 million. The properties were bought through subsidiary Three Galleria Office Buildings LLC, in which Azrieli owns a 90% stake. Azrieli did not disclose the name of the seller
The three office buildings comprising the Galleria Financial Center have 99,000 square meters (1,065,789 square feet) of space altogether. They are part of the Galleria Mall, hotel, residential and parking complex. Tenants include Merrill Lynch, Citigroup Inc. (NYSE: C), UBS AG (NYSE; SWX: UBS), and energy companies. Azrieli estimate rental income for 2011 at $14 million. The 2.4-million square foot Galleria Mall is not part of the deal.
Azrieli said that it has a commitment from a US financial institution for a $130 million loan to finance the purchase.
Azrieli Group president Menachem Einan said, "Azrieli Group focuses its strategic investments in the Israeli economy. However, when global business opportunities arise that meet the company's strict standards for income-producing deals, we seize them. This deal in Houston follows previous transactions in the city, and is an excellent opportunity for us to continue to benefit from investment in one of the most stable and fastest growing areas of the US."
The company owns the 50,000-square meter Northchase Plaza and stakes in the One Riverway and Three Riverway office buildings in Houston.
Azrieli Group's share price fell 1.9% by midday to NIS 100.80, giving a market cap of NIS 12.54 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 30, 2011
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