Gazit-Globe: Royal Senior Care Completes Transaction to Sell the Majority of Its Wholly-Owned Senior Housing Facilities for a Total of Approximately US$ 230 Million

Published on Thursday, 16 August 2012 02:57 Written by TradersHuddle Staff

TEL-AVIV, Israel, Aug. 16, 2012 (GLOBE NEWSWIRE) -- Gazit-Globe (TASE:GLOB) (NYSE:GZT), one of the world's leading multi-national real estate companies focused on acquisition, development and redevelopment of supermarket-anchored shopping centers announced today that its private subsidiary, Royal Senior Care, LLC and its members ("RSC"), completed a transaction to sell the majority of its wholly-owned senior housing facilities. Royal Senior Care, LLC is a private subsidiary in which Gazit Senior Care, Inc. (a private subsidiary fully owned by Gazit-Globe) holds a 60% interest and is active in the senior housing field in the United States. The senior housing facilities, which include 1,310 units, are being sold for a total gross consideration, before debt and transaction costs, of US$ 230 million, or US$ 175,500 per unit on average, (of which Gazit-Globe's portion is US$ 138 million).

RSC will continue to own and manage its joint venture interest in two senior housing facilities, one fully owned senior housing community, and a tract of land held for future development.

As result of this transaction, Gazit-Globe will record a gain of approximately US$ 18 million and net proceeds of approximately US$ 70 million.

Roni Soffer, President of Gazit-Globe: "We are pleased to announce the closing of this transaction. This transaction is a great achievement for our local team which shows the group's ability to successfully acquire, manage, and develop properties and platforms, including within the health care real estate sector. It also shows our ability to take  advantage of business opportunities, realize suitable returns and create value for our shareholders. This transaction is another step in our strategy to focus management's attention on our main business operations, to recycle capital to those  operations, and to continuously enhance our corporate efficiency, all while we explore new opportunities in the global real estate markets."

ABOUT GAZIT-GLOBE

Gazit-Globe is one of the largest owners and operators of supermarket-anchored shopping centers in the world. In addition, the Company is active in North America in the healthcare real estate sector. Gazit-Globe is listed on the Tel Aviv Stock Exchange (TASE:GLOB) and is included in the TA-25 and the Real-Estate 15 indices in Israel. The Company is also listed on the New York Stock Exchange (NYSE:GZT). The Group operates properties with a total value of approximately $19.0 billion in more than 20 countries and owns and operates over 600 properties with a gross leasable area of approximately 6.7 million square meters.  www.gazit-globe.com.

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of the U.S. federal securities laws. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside our control, that could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks detailed in our public filings with the SEC. Except as required by law, we undertake no obligation to update any forward-looking or other statements herein, whether as a result of new information, future events or otherwise.

CONTACT: Media Contact: 
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         Investors Contact: 
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         Gazit-Globe Headquarters,
         1 HaShalom Rd., Tel-Aviv, Israel,
         Tel: +972 3 6948000
         
         For additional information:
         Gadi Cunia,
         Senior Executive VP and CFO