Azrieli Group Ltd. (TASE: AZRG) today announced that it had acquired 100% of the Palace Tel Aviv retirement housing project for NIS 270 million.
In the deal, 10% of the price will be deposited in a trusteeship when the agreement is signed, and the remainder will be paid when the deal is completed. Annual funds from operations (FFO) from the property (cash from the company's activity, excluding the effects of one-time events) are projected to total NIS 300 million.
Palace Tel Aviv was built in 2005 by Helena and Jacob Shaham. The lot, located on Weizman St. near the Tel Aviv Sourasky Medical Center, contains 30,000 sq.m. The home includes two fully occupied buildings with 231 housing units and four nursing sections.
Over the past two years, the Azrieli Group has marked assisted living facilities as its growth engine, in view of the rise in life expectancy and the existing shortage of new buildings managed at high standards.
This deal comes on top of two projects in the sector initiated by the group: one in Modiin (240 retirement housing units) and one in Lehavim (360 units).
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2015
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