Israeli firm to sell $900m stake in Canadian REIT

Gazit-Globe has plans to sell part of its stake in Canadian real estate company First Capital Realty for C$1.2 billion ($900 million).

“This transaction is yet another important step in implementing Gazit Globe’s strategy, announced more than two years ago, to decrease our stake in mature public equity investments, reduce the company’s leverage, and increase our direct real estate holdings, while focusing on dominant assets in major urban markets where we can create value through proactive management,” said Chaim Katzman, founder and CEO. “Following the sale, which is subject to certain conditions, including the approval by a majority of FCR’s shareholders, excluding Gazit, the company’s direct real estate holdings as a percentage of its total investments [based on September 30, 2018 results] is expected to reach 44 percent, compared to 20 percent at Dec. 31, 2016, while the company’s leverage [expanded solo] is expected to be reduced to below 45 percent.