The IDB unit will finance the purchase with its own resources and external funding.
IDB Holding Corp. Ltd. (TASE:IDBH) unit Property and Building Ltd. (TASE: PTBL) has bought an office building in Chicago for $187 million. The property's net operating income will be $12.5 million in the first year, and will rise by an average of 2.5% a year.
The 17-storey 40,840-square meter (439,434-square foot) building was built in 2008. The building is full leased, including 91% to two tenants: a media company in a lease through 2033, and a business information company in a lease through 2023.
Property and Building will finance the purchase with its own resources and external funding.
Property and Building's share price fell 0.5% by midday to NIS 221.50, giving a market cap of NIS 1.4 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011