Israel's Property and Building Corp said on Sunday it had agreed to sell the HSBC Tower in midtown Manhattan for $855 million to New York real estate firm Innovo Property Group, with a net loss of $45 million.
Doron Cohen, CEO of Property and Building Corp. said management is focusing on income-producing real estate in Israel and that the amount raised from both deals will enable it to push the policy forward.
[caption id="attachment_294881" align="aligncenter" width="1024"]
Arial view of Manhattan[/caption]
He cited Tivoli Village, a high-end Las Vegas apartment complex that opened this year and could be up for sale as part of the company's efforts to increase liquidity and reduce debt.
Together with conglomerate Koor Industries, Property and Building purchased the 30-story, 80,000-square-meter HSBC tower in 2009 for $353 million. In 2011, Property acquired Koor's stake in the tower, which has an occupancy of 99%, the company said in a statement. HSBC bought the building in the 1990s.
Property and Building reported that the HSBC tower was worth $864 million on its books as of September 30. After accounting for expenses, the company said it would post a net loss of $45 million on the sale.
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HSBC tower Manhattan, NY[/caption]
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