Nochi Dankner will transfer the 50% stake held in US headquarters of HSBC bank in Manhattan by Koor Industries Ltd. (TASE:KOR) to Property and Building Ltd. (TASE: PTBL) for $138 million. CB Richard Ellis values the property at $480 million.
The 863,000-square foot complex comprises three buildings, including a 29-storey high-rise at 452 Fifth Avenue in Midtown. Koor and Property and Building bought the property in equal shares in October 2009 in a buy and lease-back deal with HSBC Holding plc (LSE: HSBA; HKSE: 005; NYSE, Paris: HBC) for $353 million. The deal was closed in April 2010.
Earlier this year, the companies signed two long-term leases for 23,500 square feet for a total annual rent of $2.8 million. The space is undergoing renovation ahead of the new tenants' occupancy in October. The companies are negotiating leases for 70% of the complex, amounting to 190,000 square feet.
Property and Building's share price fell 2.2% by midday to NIS 166.90, giving a market cap of NIS 1.6 billion, and Koor's share price fell 4.4% to NIS 33.82, giving a market cap of NIS 1 billion.
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