Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) completed another important deal this week, consolidating its real estate activity as part of its investment policy. The company bought a new office building in Chicago, construction of which was finished in July 2013.
The University of Chicago will rent the building for twenty years at an average annual rent of $6.7 million.
The 12-floor building, which has 46,000 square meters of space, is entirely leased to the university. It is located on the main street of Chicago's Hyde Park neighborhood. Maintenance costs will be borne by the university, which has an option to extend the lease agreement by a further twenty years. Clal Insurance bought the building without partners and without bank finance.
The current deal adds to a series of real estate deals that Clal Insurance has carried out since the beginning of 2013 to the tune of some NIS 2 billion. In May 2013, Clal Insurance bought 50% of the Hadar mall in Jerusalem and 100% of the Nahariya mall from Melisron Ltd. (TASE: MLSR) for a total of NIS 500 million.
In November 2013, the insurance company bought 100% of an office building in Glasgow leased to the Scottish government for ten years, for NIS 250 million. In December 2013 it bought 49% of a residential project comprising 340 units in Stamford, Connecticut, for NIS 220 million, and in March 2104 it bought 49% of a 100-unit residential project in Edgewater, New Jersey, for NIS 90 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 25, 2014
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