The building is fully leased to Dow Chemical and three other tenants for an NOI of $8 million a year.
Azrieli Group Ltd. (TASE: AZRG) US subsidiary AG Plaza at Enclave LLC has acquired an office building in Houston, Texas, for $107.5 million, plus $750,000 in transaction costs. The 31,986-square meter (344,296-square foot) building, built in 2008, is fully leased to the Dow Chemical Company (NYSE: DOW) through May 2026 and three other tenants, giving a net operating income (NOI) of $8 million a year, for a return on equity of 7.5%
Azrieli will finance 70% of the purchase with a loan from a US bank, and the rest from equity.
Azrieli's share price rose 0.7% in morning trading to NIS 90.59, giving a market cap of NIS 10.9 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on January 1, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012