The two insurance companies are expanding their US property portfolios.
The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) are expanding their US property portfolios. The two insurance companies have teamed up with Gaia Real Estate LLC to buy a Jersey City office building for NIS 272 million. Phoenix and Menorah each paid NIS 131 million for a 48% holding each in the property, and Gaia paid NIS 11 million for a 4% holding.
The 32,000-square meter nine-storey building has a commercial ground floor and a 715-space parking garage. It is fully leased on long-term contracts to two main tenants, and has a net return on investment is 8.7%. A Gaia subsidiary will manage the building.
Gaia, a New York-based company was founded in 2009 by managing partners Amir Yerushalmi, Danny FIshman, and Ken Woolley. The firm collaborates with Israeli investment institutions which provide the money for deals. Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) recently bought properties in New York and New Jersey through Gaia.
Published by Globes [online], Israel business news - www.globes-online.com - on August 3, 2011
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