Real estate firm Gazit-Globe raises $155 mln in share offering

Thu Dec 31, 2015 2:32am EST
 
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TEL AVIV Dec 31 (Reuters) - Israeli real estate developer Gazit-Globe said on Thursday it raised 604 million shekels ($155 million) in a share offering on the Tel Aviv Stock Exchange.

The company sold 17 million shares at 35.5 shekels a share. Norstar Holdings Inc, which owns 50.25 percent of Gazit-Globe, bought 8.5 million of the shares at a total cost of 300 million shekels.

Gazit-Globe said it will use the proceeds from the offering to refinance its debt and for general corporate purposes.

"The offering will allow the company to maintain a strong balance sheet and high liquidity for the benefit of the company's operating activities while strengthening its ability to identify and execute new investment opportunities in its core activity," said Chief Executive Rachel Lavine.

The company, whose share price has fallen 24 percent this year to close at 35.2 shekels on Wednesday, has a market value of 6.3 billion shekels.

It operates in the United States through Equity One and in Canada through First Capital Reality Inc . It is the largest shareholder in Finland's Citycon , controls shopping mall developer and is expanding in Brazil. ($1 = 3.9007 shekels) (Reporting by Tova Cohen; Editing by Ari Rabinovitch)