Nochi Dankner-controlled IDB Holding Corp. (TASE:IDBH) is moving forward in its plans to buy the HSBC headquarters in New York. An agreement in principle was signed today between Bank Leumi (TASE:LUMI) and IDB units Koor Industries Ltd. (TASE:KOR) and Property and Building Corp. Ltd. (TASE:PTBL).

Koor and Property and Building agreed two months ago to buy New York's HSBC Tower for $330 million, and Leumi will finance 64% of that sum - $210 million over 10 years and as part of the deal will provide guarantees of $52.5 million for each of Koor and Property and Building.

The 80,000-square meter HSBC Bank Building comprises two structures, one 12 stories and the other 29 stories, at 425 Fifth Avenue and 1 West 39th Street. HSBC will lease back 51,000 square meters of the buildings under a ten-year lease, with a ten-year option to extend. It will pay $45 million in rent in the first year, while the IDB units will pay $18.5 million in annual expenses on the property.

Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2010

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