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Gazit-Globe $GZT Sells Brazil Mall Stake, Buys $47M Avenida Paulista Property

Gazit-Globe $GZT Sells Brazil Mall Stake, Buys $47M Avenida Paulista Property

Gazit-Globe (NYSE: GZT) (TSX: GZT) (TASE: GZT), the largest Israeli global real estate development company with a market capitalization of $1.78 billion, said it has sold part of its stake in Brazil’s BR Malls for close to $53 million, decreasing its stake to below 5%. The value of the shares of BR Malls as of June 30, 2016, reflects a realized gain of 40 million shekels, and an unrealized gain of approximately 90 million shekels on the remaining unsold shares, the company said, representing an overall profit of $34 million. The company’s subsidiary Gazit Brasil used the sale proceeds to acquire an office building and parking garage at Top Center Shopping in Sao Paulo, Brazil for 153 million Brazilian Reals ($47 million). Top Center Shopping is an urban mixed use property, which includes a shopping center, an office building and a 370 car parking garage on Paulista Avenue, a landmark avenue in the heart of Sao Paulo, Brazil’s main business and financial center. More than 1.5 million Sao Paulo residents commute daily to Paulista Avenue, home to a large number of financial institutions. Paulista Avenue, which was inaugurated in 1891, is generally regarded as one of the most expensive real estate locations in South America. The 2.8 km thoroughfare is notable for headquartering a large number of financial and cultural institutions, as well as being home to an extensive shopping area and to South America’s most comprehensive fine-art museum, MASP. avenida_paulistaThe office building comprises 17 stories and has a gross leasable area (GLA) of approximately 13,450 square meters. The building is occupied by major tenants, including the Consulate of Japan, Dow Jones, Procter & Gamble, Goodyear and others. “The NOI of the shopping center, which currently enjoys 100% occupancy, increased by 30% since it was acquired by Gazit Brasil in September 2014, as a result of pro-active management of its wholly owned subsidiary, Gazit Brasil, managed by Mia Stark, its CEO,” the company said in a statement. With the closing of this transaction Gazit Brasil will own and operate 9 assets with a total GLA of approximately 125,000 square meters and a total value of R$ 1.4 billion ($440 million), it said. “We are pleased to show an impressive profit from our investment in BR Malls, and will continue to explore the possibilities for the sale or purchase of additional shares based on market conditions and the alternatives for direct investment in real estate,” said Rachel Lavine, CEO of Gazit-Globe. “The acquisition of the office building and the underground garage provides us with an opportunity to expand the shopping center space and create operational synergies, converting some office space into retail units, improving the shopping center area and utilizing to greater efficiency,” she added. Gazit-Globe is one of the largest owners, developers and operators of predominantly supermarket-anchored shopping centers in major urban markets around the world. As of March 31, 2016, Gazit-Globe owns and operates 439 properties in more than 20 countries, with a gross leasable area of approximately 6.5 million square meters and a total value of more 80 billion shekels. Gazit-Globe operates in the United States through a stake in Equity One (NYSE: EQY) and in Canada through First Capital Realty Inc (TSX: FCR). It is the largest shareholder in Finland’s Citycon Oyj (HEX: CTY1S) (OMX: CTY) and controls European shopping mall developer Atrium European Real Estate (VSX: ATRS). GAZIT-GLOBE HISTORY Gazit-Globe was founded in 1982. Since May 1991, the company has been controlled by Chaim Katzman, a graduate of Tel Aviv University Law School, who trained as a lawyer and in 1979 moved to South Florida, where he became involved in the development and management of commercial and residential real estate. He is a well-known philanthropist and supporter of education and the arts in the United States and abroad. Katzman is the chairman of Gazit-Globe and its parent Norstar, formerly Gazit Inc. In June 2010, he was appointed chairman of Citycon Oyj. He also serves as chairman of Equity One and as a director of First Capital Realty. In 2008, he became chairman of Atrium European Real Estate. During the 1980s he started developing his real estate business in Israel, and was able to consolidate his holding in Gazit-Globe, at the time a corporate shell with no business operations. The holding in Gazit-Globe enabled Katzman to draw investors to help him acquire additional retail centers, and it became a vehicle to raise capital for further property and business acquisitions. In 1992, Katzman formed Equity One as a partially owned subsidiary of Gazit, operating as a real estate investment trust (REIT). In 1998 Equity One went public through an IPO on the New York Stock Exchange, with Gazit-Globe retaining a large ownership stake. In 2004 Gazit acquired 33% of Citycon, a Finnish public company focused on commercial real estate in the Nordic region. Gazit subsequently increased its stake in Citycon to 47%. In August 2008 Gazit-Globe acquired troubled European property developer Meinl European Land (VSX: MELV), and invested 800 million euros into the company, through a joint venture with Citigroup’s (NYSE: C) real estate investment arm, Citi Property Investors (CPI). Following the takeover, Meinl’s name was changed to Atrium European Real Estate Ltd and a new board of directors and management were appointed. The move strengthened Gazit’s foothold in the Eastern European and Russian markets. In 2010, New York private equity firm Apollo Global Management (NYSE: APO) acquired Citigroup’s CPI, including its joint venture stake in Atrium. In January 2015, Apollo sold its 13.9% Atrium stake to Gazit-Globe for 229 million euros, increasing Gazit-Globe’s controlling stake in Atrium to 55%. In December 2011, Gazit-Globe made an initial public offering on the New York Stock Exchange, raising $81 million. In October 2013, Gazit-Globe listed its shares on the Toronto Stock Exchange. Photo: Chaim Katzman, Chairman of Gazit-Globe, Equity One, First Capital Realty (2000-2015), Atrium European Real Estate, and Citycon Oyj.]]>

Canada's OneREIT $ONR.UN Hires TD Securities to Seek Exit, Once Again

Canada's OneREIT $ONR.UN Hires TD Securities to Seek Exit, Once Again

Globe and Mail, in 2006 “Retrocom has achieved the unachievable: Despite a great market for retail properties, its unit price has fallen 32 per cent since its initial public offering, and it became one of the first REITs ever to cut distributions.” “Retrocom has become the real estate world’s equivalent of an aging divorcée who rents a billboard to advertise her availability to men,” said the Globe and Mail under the headline, “Dowdy mall REIT best left off résumé of a potential PM.” “How did it come to this?” asks the Globe and Mail. “If the trust’s name is vaguely familiar to you, perhaps you’ve heard of Retrocom Growth Fund, which recently became the latest labour-sponsored fund to hit a liquidity crisis and suspend redemptions.” “How it’s possible to screw up real estate in this market is an open question, but most REIT-watchers point to the union ties as part of the problem. Some of the properties Retrocom acquired in the IPO are true dogs. (A 37-year-old mall in Terrace, B.C., that’s 25-per-cent vacant? No thanks.),” the Globe and Mail added. On March 22, 2004, Retrocom completed its initial public offering of 10,769,000 trust units for gross proceeds of over $107 million. The offering was underwritten by a syndicate that was led by CIBC World Markets Inc. and included TD Securities Inc., BMO Nesbitt Burns Inc., National Bank Financial Inc., Canaccord Capital Corporation, Desjardins Securities Inc. and HSBC Securities (Canada) Inc. The Canadian REIT specializes in owning and operating income producing shopping centers, consisting of a mix of new format shopping centers, open air strip plazas and enclosed shopping malls.. Its growth comes from improving its assets and purchasing built out shopping centers. The REIT reportedly owns a portfolio of approximately 60 properties, with over 900 tenants spread out throughout Canada, including over 55 investment properties located in approximately nine provinces and the Yukon Territory, one parcel of land for development located in New Brunswick, and an interest in over 40 acre tract of land in Mississauga, Ontario. It owns over three retail properties in the Province of British Columbia consisting of shopping centers located in Abbotsford, Chilliwack and Mission; approximately three retail properties in the Province of Alberta consisting of shopping centers located in Cochrane, Medicine Hat and Red Deer, and over 30 retail properties and an interest in Joint Venture Property in the Province of Ontario. OneREIT owns over six properties in the Province of Saskatchewan and a property in the Province of Manitoba. Photo: OneREIT Kenora Shopping Center, in Kenora, Ontario. The 81,000 sq. ft. outdoor mall is situated on Mikana Way and Highway 17. Walmart anchors the center with an adjacent Canadian Tire. It includes future development opportunities available up to 8,000 sq. ft.]]>

Banco Hipotecario's Elsztain Buys Iconic Buenos Aires Mercado Del Plata for $68M

Banco Hipotecario's Elsztain Buys Iconic Buenos Aires Mercado Del Plata for $68M

“The auction was within the expected parameters, because the $42 million base was too low, I think it reached a fair price,” said the head auctioneer of Banco Ciudad in charge of the bidding, Ricardo Vitaliti. “The proceeding became somewhat complicated because of disparate bidding figures (buyers bid the sales price up by $114.000 or $116,000), while I expected more round numbers, but it is also true that $114,000 is a lot of money.” He further commented that this was his personal record sale on auction: “In 2009 I sold the largest lot of Catalinas for $46 million, but having a sale of this size under the hammer is something to be proud of.” Banco Ciudad president Javier Ortiz Batalla, said that the auction “has been a very transparent process, all participants were very pleased,” and stressed that “the final value of the sale has significantly exceeded expectations.” The money to be received by the Executive branch of the City of Buenos Aires will be used to repay debt acquired for its relocation to the current headquarters of the City Government’s Head Office at Uspallata 3100 in Parque Patricios, a building designed by British architect Norman Foster. The Edificio del Plata occupies half a block between Carlos Pellegrini, Sarmiento, Carabelas passage and Perón streets. It has 42,256 square meters, nine floors and three underground levels, and was re-opened in 1962, to house the offices of the Municipality of Buenos Aires on the upper floors, and a market on the ground floor. In October 2008, during the administration of Mauricio Macri as Mayor of Buenos Aires, now the country’s President, an imposing gigantography of “Speed,” a work of artist Fabian Burgos, was installed on the facade of the building and reproduced in an area of 2992 square meters of micro perforated vinyl fabric. This started a series entitled “Art in La Plata”, which continued in March 2009 with William Ueno’s “Siesta” and in July of that year with Max Gomez Canle’s “Window.” In October 2009, “Terrace” by photographer Marcos López, followed. Finally, in June 2010 the gigantography of “Myths of my Childhood” by Antonio Seguí was mounted. In 2013, the gigantography of Pope Francis was erected on the building’s facade. The Mercado del Plata, the first covered wholesale supply market in the City of Buenos Aires, was originally inaugurated on the site in 1856. old_mercado_del_plataCarts from San Isidro, San Fernando, and the Conchas districts, among others, met at the market to sell their products consisting mainly of wood branches and beams, wood and reeds for ranches, watermelons, melons, peaches, wheat, corn, barley, canary seed, etc. Of those carts, some were parked, especially fruit and corn, and sold retail, placing lanterns on them at night. As the population and city outer limits began to grow, the carts were relocated to the periphery of Buenos Aires. Between 1947 and 1962, the “Edificio del Plata” was built on the site.]]>