Israeli IDB holding group buys HSBC headquarters in New York

Israel’s Koor Industries and Property and Building said early this month that they had signed a deal to acquire from HSBC the bank’s headquarters in Manhattan for $330 million. Koor and Property and Building are both subsidiaries of Israeli holding …

Israel’s Koor Industries and Property and Building said early this month that they had signed a deal to acquire from HSBC the bank’s headquarters in Manhattan for $330 million.

Koor and Property and Building are both subsidiaries of Israeli holding company IDB Holding Corp. The purchase will be financed through the group’s own resources.

The complex at 425 Fifth Avenue and 1 West 39th Street consists of two buildings, with a total of 865,000 square feet.

HSBC, Europe’s biggest bank, will remain the main tenant in the building for 10 years with an option to extend its lease.

IDB said it will receive $45 million in rental income in the first year while operating expenses will total $18.5 million.

In recent years the group has been diversifying its investments abroad, investing in Elad IDB Las Vegas LCC, which acquired a Las Vegas Strip site to build a $5 billion resort casino.

IDB is the controlling shareholder in Cellcom, Israel’s largest mobile phone operator, and Shufersal, the country’s biggest supermarket chain.