Israeli firm to sell HSBC Tower to Innovo Property Group for $855 mn
Real Estate

Israeli firm to sell HSBC Tower to Innovo Property Group for $855 mn

Israel's Property and Building Corp told the media it agreed to sell the HSBC Tower building in midtown Manhattan for $855 million to New York-based real estate company Innovo Property Group, registering a net loss of $45 million.

The Israeli firm, which is 63% held by Discount Investment Corp, said it had also sold the property in Israel for $123 million. The chief executive of both Property and Building and Discount, Doron Cohen, told the media that the management was focusing on income-producing properties in Israel and the amount it was getting from both deals would permit it to advance this policy.

They are continuing the policy and exploring the possibility of realising additional properties in the United States and Israel, Cohen said, citing the sale of the HSBC building came despite "gloomy" predictions over U.S. commercial realty market. He indicated Tivoli Village, an upscale apartment complex in Las Vegas that opened in 2021, which may be put up for sale as part of the firm's efforts to enhance liquidity and decrease debt.

Along with conglomerate Koor Industries, Property and Building, purchased the 30-storey, 80,000 sq m HSBC Tower in 2009 for $353 million. In 2011, Property procured Koor's share in the tower which has an occupancy of 99% HSBC had purchased the building in the 1990s. Property and Building told the media that the value of the HSBC Tower in its books was $864 million as of September 30. After costs, it said it would register a net loss of $45 million from the sale. Completion of the sale is anticipated by 1st April 2022, subject to Innovo's right to advance the date while additionally receiving options to postpone the completion twice for 30 days each.

Image Source

Also read: Israeli firm to fund construction of Peripheral Ring Road

Israel's Property and Building Corp told the media it agreed to sell the HSBC Tower building in midtown Manhattan for $855 million to New York-based real estate company Innovo Property Group, registering a net loss of $45 million. The Israeli firm, which is 63% held by Discount Investment Corp, said it had also sold the property in Israel for $123 million. The chief executive of both Property and Building and Discount, Doron Cohen, told the media that the management was focusing on income-producing properties in Israel and the amount it was getting from both deals would permit it to advance this policy. They are continuing the policy and exploring the possibility of realising additional properties in the United States and Israel, Cohen said, citing the sale of the HSBC building came despite gloomy predictions over U.S. commercial realty market. He indicated Tivoli Village, an upscale apartment complex in Las Vegas that opened in 2021, which may be put up for sale as part of the firm's efforts to enhance liquidity and decrease debt. Along with conglomerate Koor Industries, Property and Building, purchased the 30-storey, 80,000 sq m HSBC Tower in 2009 for $353 million. In 2011, Property procured Koor's share in the tower which has an occupancy of 99% HSBC had purchased the building in the 1990s. Property and Building told the media that the value of the HSBC Tower in its books was $864 million as of September 30. After costs, it said it would register a net loss of $45 million from the sale. Completion of the sale is anticipated by 1st April 2022, subject to Innovo's right to advance the date while additionally receiving options to postpone the completion twice for 30 days each. Image Source Also read: Israeli firm to fund construction of Peripheral Ring Road

Next Story
Real Estate

Häfele unveils Profin aluminium profiles for modern kitchens

Häfele has launched its Profin range of aluminium profiles, designed to enhance open kitchen layouts gaining popularity in urban homes. With shrinking living spaces and the rise of micro-living, kitchens are increasingly becoming integral parts of living areas. This demands cabinetry that is both functional and visually seamless. The Profin range offers a modern solution, combining aesthetics with precision engineering. It includes four product categories—Gola Profiles, Stack Modular Shelving, Rail Door Profiles, and Strike Shelving System—catering to varied functional and design nee..

Next Story
Resources

CIPL to invest Rs 4 billion in phosphoric acid plant

Caitlyn India (CIPL) will invest Rs 4 billion to set up a 50,000 TPA integrated phosphoric acid plant in southern India. The company is scouting port-accessible sites and plans to commission the facility by FY 2027. The project will span 30–50 acre and aims to reduce India's dependency on imported phosphoric acid. The plant will adopt hemihydrate–dihydrate (HH-DH) technology, enabling high-purity phosphoric acid production with cleaner gypsum by-products. A captive sulphuric acid unit will be included for operational efficiency. Initially, output will be supplied to domestic fertilise..

Next Story
Equipment

TKIL Industries, HOPPECKE partner for rail battery systems in India

TKIL Industries (formerly thyssenkrupp Industries India) has signed an exclusive agreement with Germany-based HOPPECKE Batterien GmbH & Co. to develop battery systems for India’s growing rail sector. The partnership aims to deliver innovative and sustainable energy storage solutions for metros, regional trains, and locomotives. The first joint project under this strategic alliance has already been secured and is expected to roll out in 2025. The collaboration comes at a time when India plans to double its electric locomotive capacity by 2030 and expand metro services from 23 to 31 c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?