Income-producing real estate company BIG Shopping Centers is still expanding its US business. The company today announced that it had completed its acquisition of 80% of a shopping center in Madison, Wisconsin for $52 million. The acquisition was through partnership set up by BIG with US company RED, which will own the remaining 20% of the shopping center and manage it on behalf of the partnership. BIG's investment reflects a $64.5 million value for the property, which was determined according to the estimated $4.7 million net operating income (NOI) expected from it in the third year following the acquisition. The NOI expected in the first year is $3.45 million, and the seller will pay the difference between the two amounts. There is a $38 million debt on the property, which the partnership plans to refinance on better terms than the existing loan.
The company, controlled by former Mey Eden bottled water company shareholders Yehuda and Roni Naftali, also reported that it was in negotiations to acquire eight different shopping centers in the US. The company believes that the acquisition of the properties will be spread over the period of time ending in the first quarter of 2016, but at this stage, there is no certainty that the negotiations for the acquisition will be completed.
Managed by CEO Eitan Bar Zeev, BIG's business focuses on open air shopping centers in Israel and the US. In recent days, the company has begun marketing commercial space in its planned BIG FASHION Glilot center next to Cinema City Glilot, in which NIS 1 billion will be invested.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2015
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