WASHINGTON, DC-Israeli real estate investment companyAlony Hetz is buying a stake in local investmentfirm Carr Properties. The Israeli company inked aterm sheet with the Special Situation Property Fund of JPMorgan Chase Bank and other entities to invest in Carr,which is a private REIT owned by JP Morgan AssetManagement.
The term sheet calls for a new company, dubbedNewco, to be formed, which will manage theportfolio once the assets are transferred to it. Alony Hetz willinvest $300 million in the new company. In return,it will be allocated a 45% share in thecompany--an identical percentage with the JPMorgan Chase Bankfund.
The two companies estimate that Newco's IFRS NAV at the end of2012 will be a pro forma $370 million. When the transaction closes,Newco's equity will stand at $670 million, its property value willbe $730 million and its annual dividend distribution will be6%.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
