TEL AVIV (Reuters) - Israeli real estate investment firm Gazit Globe (GZT.TA) said on Tuesday it was establishing a joint venture with its Toronto-based director Dori Segal to buy and manage mixed-use properties in Canada, particularly in Toronto.
Gazit Globe will own 60% of the joint venture and initially will invest C$60 million ($45 million) while Segal will invest C$40 million. Gazit Globe will also lend the partnership C$50 million.
Segal will serve as chief executive of the joint venture, which intends to invest C$1 billion in Canadian real estate in the coming five years. It will secure Canadian debt to purchase properties and is in the process of buying a building for commercial use in Toronto for C$7 million.
The joint venture has agreed that when purchasing properties that cost over C$75 million, Gazit Globe can invest jointly.
Segal, a former CEO of Gazit Globe, will not stand for reelection to Gazit Globe’s board at next month’s annual shareholders’ meeting.
Gazit Globe in April sold most of its stake in Canada’s First Capital Reality Inc (FCR.TO).
Reporting by Tova Cohen; Editing by Steven Scheer