Gazit-Globe Ltd. (TASE: GLOB) US subsidiary Equity One Inc. (NYSE: EQY) has sold 36 shopping centers across the US Southeast to Blackstone Group LP (NYSE: BX) unit Blackstone Real Estate Partners VII for $473.1 million. The company estimates that it will report a net impairment loss of $32-36 million on the sale in its financial report for the third quarter.
Equity One will use the proceeds to repay debt, finance redevelopment plans, and make future acquisitions.
Equity One said that the properties were encumbered by mortgage loans amounting to $177.4 million as of the end of June. Most of the shopping centers are in Atlanta, Tampa, and Orlando. Others are in North Carolina, South Carolina, Alabama, Tennessee and Maryland. Their net operating income was $35.4 million in the 12 months through June 2011.
Gazit-Globe owns 33.8% of Equity One, and Gazit America Inc. (TSX: GAA), in which Gazit-Globe owns 73.1%, owns an additional 12.7% of Equity One.
Equity One's share price rose 2.1% in New York yesterday to $15.79, giving a market cap of $1.81 billion. Gazit-Globe's share price rose 2.6% in early trading on the TASE today to NIS 37.58, giving a market cap of NIS 5.8 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 27, 2011
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