Nochi Dankner-controlled IDB Holding Corp. Ltd. (TASE:IDBH) subsidiaries Koor Industries Ltd. (TASE:KOR) and Property and Building Ltd. (TASE: PTBL) have completed the purchase of the HSBC USA Inc. headquarters in Manhattan for $330 million in a buy and lease-back deal. The company bought the property at 452 Fifth Avenue, at the corner of West 40th Street. The property comprises a 29-storey building and an adjoined 12-storey building, with 80,000 square meters of space altogether.
Koor and Property and Building obtained a $210 million ten-year loan from Bank Leumi (TASE: LUMI) unit Bank Leumi USA. The two companies will each provide a $52.5 million guarantee as collateral. The loan amounts to 64% of the purchase price.
HSBC USA will lease the building for ten years with options to extend.
452 Fifth Avenue, across the Street from the New York Public Library, was designated a Landmark Preservation Building in 2007. HSBC acquired the property with its purchase of Republic National Bank in 1999.
Koor's share price rose 0.8% in early trading today to NIS 103.50, and Property and Building's share price was unchanged at NIS 301.00.
Published by Globes [online], Israel business news - www.globes-online.com - on April 14, 2010
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