Multinational real estate company Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT) unit ProMed Properties Inc. has signed an agreement to sell 6 medical office buildings. The six properties cover 624,000 square feet and are being sold for $205 million, or $328 per square foot.
Following completion of this deal, and ProMed's sale in June 2014 of 6 buildings for $200 million, the remaining ProMed portfolio will consist of 4 properties totaling 405,000 square feet with a total book value of $175 million. As part of the strategic process Gazit-Globe began in 2012 with the sale of its senior housing business, Gazit-Globe plans to continue to explore opportunities to maximize value from these remaining assets.
Gazit-Globe President Roni Soffer said, "These transactions, together with the properties sold by ProMed in June, are well aligned with our strategy to recycle capital at compelling valuations and focus on our global retail business operations. We entered the healthcare real estate sector in the US over a decade ago, and over time, we enhanced and added tremendous value to the portfolio. After successfully exiting the senior housing business, we are now taking major steps to strategically monetize our medical office platform. These transactions have again demonstrated our local management team's ability to identify and take advantage of business opportunities and realize above market returns while creating substantial value for our shareholders."
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2014
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