Gazit-Globe unit sells 6 US properties for $200m

ProMed Properties has sold six medical office buildings to a US company.

Gazit-Globe Ltd. (NYSE: GZT; TASE: GZT; TSX: GZT) has sold six medical office buildings owned by subsidiary ProMed Properties Inc.for $200 million, apparently to a US company. The outstanding debt on the properties is $106 million, of which $90 million will be transferred to the buyer and Gazit-Globe will repay the rest.

Five properties have already been sold and the sixth will be sold by the end of the month. The properties have a total area of 41,000 square meters. Prior to the sale, ProMed owned 16 office buildings across the US with an aggregate area of 136,000 square meters. The occupancy rate is 96% and the average rate of return was 6.9% in 2013. It had a NIS 1 billion credit line at the end of 2013 and its properties were valued at NIS 1.95 billion at the end of March 2014.

Published by Globes [online], Israel business news - www.globes-online.com - on June 8, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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