Boston, MA 08/14/2014 (wallstreetpr) – A global real estate company Gazit-Globe Ltd. (NYSE:GZT) disclosed on Thursday morning that its two subsidiaries have struck a separate deal to sell and buy properties in different regions. While the buying of properties is worth about $65 million, sale of properties would fetch $205 million.
Sale Of Properties
Gazit-Globe Ltd. (NYSE:GZT)’s subsidiary, ProMed Properties, Inc. would sell six properties of 624K square feet at the rate of about $328 a square foot. This meant that it would get a gross consideration of $205 million from the sale of the six properties. The current sale was preceded by another six buildings sale in June that generated sale proceeds of $200 million.
After selling 12 properties, ProMed still has four properties of about 405K square feet that had a total book value of about $175 million. The company had also indicated that it would continue to explore opportunities to get maximum value from the remaining properties. It had initiated a tactical process to sell senior housing business in 2012.
Buying Of Properties
Gazit-Globe Ltd. (NYSE:GZT)’s another subsidiary; Gazit Brasil had struck a deal to buy Top Center Shopping located in Sao Paulo for about $65 million. The property is an urban shopping center and forms part of a mixed project on Paulista Avenue in the heart of Sau Paulo, which was the primary business center of Brazil.
An estimated 1.5 million people commute to Paulista Avenue every day since it houses a number of financial institutions. The property has 6.4K square meters and tenants include big names such as Starbucks Corporation (NASDAQ:SBUX) and McDonald’s Corporation (NYSE:MCD).
Management Speaks
Gazit Brazil’s CEO Mia Stark said that the acquisition was the third asset that the company had purchased in the city. It has high barriers to enter with excellent demographics and was well aligned with its strategy to buy and own urban assets in Sao Paulo.
