This morning, Gazit-Globe Ltd. (NYSE: GZT; TASE: GLOB) announced the appointment of Chaim Katzman, who up to now has been chairman of the company, as CEO. The real estate tycoon will replace Dori Segal, who was appointed at the end of 2016 when the previous CEO, Rachel Lavine, resigned. Segal will step down on January 31, and Katzman will replace him from that date.
Katzman has been chairman of Gazit-Globe since 1995. He is also chairman of Atrium European Real Estate Limited, chairman of Citycon Oyj, and vice chairman of Regency Centers Corporation since March 01, 2017. He is also chairman and CEO of Norstar Holdings, which owns the controlling stake in Gazit-Globe.
Katzman will step down as chairman of Gazit-Globe and Norstar before taking up the post of CEO of Gazit-Globe, and will serve as vice-chairman of those two companies.
Segal served as CEO of Gazit-Globe between 1998 and 2008 and again from 2017. He Segal will continue to serve as a board member of the company and several of its private subsidiaries. He was president and CEO of First Capital Realty from 2000 to 2015 and currently serves as chairman of First Capital Realty.
"It has been a pleasure and a privilege building the company over the past 25 years, alongside Chaim, from a small entity of 2 properties of less than 100,000 sq. ft. to a global owner of high-quality properties," Segal said. "I am delighted to continue to serve as chairman of the board of First Capital Realty, given its talented CEO and management team, best-in-class portfolio and unique position in the Canadian market."
"Dori has been an integral part of our success over the past 25 years," Katzman said. "I welcome Dori's willingness to accept the board's and my request to focus his attention on FCR, and am very pleased that Dori is enthusiastic about the tremendous opportunities available to FCR. I am confident that all of FCR shareholders will greatly benefit from Dori's experience and devotion to the business.
A month ago, real estate and infrastructures group Luzon reported completion of the deal with Gazit-Globe, formerly the controlling shareholder in the company, concerning Luzon's debt to it in the form of capital notes and owners' loans. The deal represented a write-off of hundreds of millions of shekels for Gazit-Globe (which had already been mostly provided for on its books) on debt owed to it by Luzon (formerly U. Dori Construction Ltd.) amounting to some NIS 500 million. In exchange for the write off, Luzon issued to Gazit-Globe bond to the value of NIS 120 million and shares, that in total could represent 17% of Luzon.
Amos Luzon bought control of the company in early 2016 from Gazit-Globe for less than NIS 10 million. The sale followed financial chaos in subsidiary Dori Construction that led Gazit-Globe to offer it for sale at almost any price.
Published by Globes [online], Israel business news - www.globes-online.com - on January 9, 2018
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