The deal joins the NIS 2 billion worth of real estate deals transacted by Clal Insurance Enterprises Holdings Ltd. Group since the beginning of 2013, as part of the company’s strategy of expanding its activity in the non-tradable sector, with a strong focus on real estate
After its first year of activity, Clal U.S. Management, Clal Insurance’s subsidiary in the United States, has transacted real estate deals in the U.S. worth NIS 1 billion
The real estate portfolio represents approximately 4% of Clal Insurance’s investments, and is divided between nostro accounts (approximately 30%) and unit holders (approximately 70%)
Deals made since the beginning of 2013 represent approximately 40% of the company’s current real estate portfolio, which includes assets in Israel, Britain and the U.S. totaling 500,000 square meters – among them several shopping centers and dozens of rental buildings
Clal Insurance Group this week closed another significant deal, which cements the role of real estate as an integral part of its investment activity. The company bought from the University of Chicago a new 12-story office building whose construction was completed in July 2013. The high-standard modern building is located on the main street of Chicago’s Hyde Park neighborhood (where President Barack Obama has a home) and is fully leased to the University of Chicago for a period of 20 years.
Situated close to the university’s home in Hyde Park, the 46,000-square-meter building was bought from the university in a sell and leaseback deal, under which the university will lease the building for 20 years at an average annual rent of $6.7 million with an option to extend the agreement for an additional 20 years. Maintenance costs will be borne by the university. Clal did not bring in partners for the acquisition and bought the property without any bank financing.
NIS 2 billion in real estate deals since the beginning of 2013
The current deal joins a series of real estate transactions Clal has carried out since the beginning of 2013, with a total value of approximately NIS 2 billion. The Clal Group’s main transactions during this period include acquiring 50% of the Hadar mall in Jerusalem and 100% of the Nahariya mall from Melisron for a total of NIS 500 million (May 2013); acquiring 100% of an office building with a 10-year lease to the government in Glasgow, Scotland , for NIS 250 million (November 2013); acquiring 49% of a 340-unit residential project in Stamford, Connecticut for NIS 220 million (December 2013); and acquiring 49% of a 100-unit residential project in Edgewater, New Jersey, for NIS 90 million (March 2014).
At the end of its first year of activity, Clal U.S. Management, the Clal Group’s subsidiary in the United States, had made NIS 1 billion worth of real estate transactions in the U.S.
The real estate portfolio represents approximately 4% of Clal Insurance’s investments, and is divided between nostro accounts (approximately 30%) and unit holders (approximately 70%).
Deals made since the beginning of 2013 represent approximately 40% of the company’s current real estate portfolio, which includes assets in Israel, Britain and the U.S. totaling 500,000 square meters – among them several shopping centers and dozens of rental properties.
Amir Shostak, head of Real Estate in Canaf, Clal’s investment wing: “The Chicago deal represents a leap upward in Clal Insurance’s real estate activity. We gained the deal after a lengthy process, and we’re proud to be partners with the University of Chicago for the next 20 years. The company is checking out additional acquisitions and intends to make deals in Israel in the field of retail and commercial real estate; in the U.S. in the field of commercial and residential rentals and in Britain mainly in the field of office space”.
Tamir Kazaz, CEO of Clal U.S. Management: “The Chicago deal is an attractive investment, a new building that comes with a long-term lease of at least 20 years. The lessee is prestigious University of Chicago, which has been ranked among the 10 best universities in the world. The field of rental housing in the U.S., in which we have made recent acquisitions, is characterized by relative stability, high occupancy rates and rising rental prices ”.