Big Shopping Centers (2004) Ltd. (TASE:BIG) is selling two assets in the US. The company reported this morning that a US subsidiary in which it indirectly holds 80% had signed two binding agreements with a US real estate investment trust (REIT) for the sale of its 60% holdings in the 59,600 square meter open shopping center Camelback Colonnade in Phoenix, Arizona and its 80% holding in the 8,600 square meter Shops at Hilton Village shopping center in Scottsdale, Arizona.
The Camelback Colonnade is being sold for $162.5 million, of which the Big subsidiary's share is $97.5 million. The valuation is the same as the value of the asset on Big's books. After repayment of loans and associated expenses, the subsidiary will receive $44.4 million cash from the deal.
The Shops at Hilton Village center is being sold for $37.5 million, plus $1.5 million to cover a penalty for early loan repayment. The subsidiary's share is $30 million, and net cash proceeds will amount to $12 million.
Big Shopping Centers deputy CEO Assaf Nagar said, "We are delighted to report the sale of two assets today, further to the strategy we reported only a few months ago. The sale of the assets at their book values and at an average capitalization rate of 6% when the effect of the coronavirus pandemic is still prevalent in the market indicates the kind of assets we have in our portfolio in the US and their strength. We are currently making progress on further sales, at the same time as continuing to develop and expand our activity in other areas of the company's business and to identify new opportunities."
Published by Globes, Israel business news - en.globes.co.il - on April 4, 2021
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