Property & Building is considering an investment in the Lipstick Tower in New York, which is also held by Elstein
In the framework of the transaction, the leasing rights will also be acquired in Migdal, which is built on the real estate, which is owned by a jointly controlled third party company and by the controlling shareholder in Property & Building Eduardo Elstein. A few days ago, DIC published a full tender offer for the public’s holdings in Property & Building for NIS 653.7 million
Real estate company Property & Building
(35,000 + 0.46%)
Is examining the possibility of acquiring control of the Lipstick Tower in New York. The company reported that it has commenced preliminary proceedings to examine a transaction in which it will acquire all of the ordinary share capital of a corporation held by a third party, which holds most of the rights in the land on which the lipstick tower is built.
This is a 34-story office tower on Third Avenue between 53rd and 54th Streets in Manhattan. The proceeds of the transaction amount to approximately $ 51 million. In addition, the acquired corporation has financial liabilities in the amount of $ 420 million that were taken to finance its acquisition, and their repayment is expected to be required as part of the acquisition or shortly thereafter.
According to Property & Building, additional costs are expected in the transaction, the date of which is unknown. In addition, the Company is examining the possibility that in the framework of the transaction, the lease rights in the tower built on the real estate, which are owned by a jointly controlled third party and of the controlling shareholder in Property & Building – Eduardo Elstein, will also be purchased. However, the terms of this possible transaction have not yet been discussed.