Gazit-Globe's Citycon To Buy Sektor Gruppen

(RTTNews) - Gazit-Globe, Israel-based real estate investment company, Monday said its subsidiary Citycon has agreed to buy Norway's second largest commercial real estate company Sektor Gruppen for about 1.47 billion euros, including debt.

Privately-held Sektor Gruppen focuses mainly on the development and operation of supermarket- anchored shopping centers in Norway. Sektor's revenues in 2014 were 127 million euros and operating income was about 75 million euros.

Gazit-Globe said the consideration will be paid in cash of about 541 million euros and by the assumption of debt. The deal is expected to close in July 2015.

Citycon plans to fund the deal through a rights issue of about 600 million euros, a 250 million euros bridge financing facility obtained from a syndicate of Nordic banks.

Gazit-Globe Chairman Chaim Katzman said, "This major, strategic transaction further strengthens Gazit-Globe's position as one of the most significant players in the global shopping center industry as well as demonstrating our ability to enter into new and attractive markets, including AAA rated countries with high barriers to entry, and become a market leader, while further enhancing our portfolio diversification and our cash flow."

Gazit-Glove is the largest shareholder in Finland-based Citycon.

GZT closed Friday's regular trading at $12.50, down $0.14 or 1.09%, on the NYSE.