Phoenix Holdings acquired a 25 percent stake in a portfolio of 22 commercial centers in Texas this week from international asset management company Investcorp for $85 million.
The purchase was part of a multi-partner deal to buy a 50 percent stake for $170 million in the properties owned by Investcorp, a global investment company that manages $12 billion in assets. Investcorp will retain the remaining 50 percent stake in the properties. The majority of financing for Phoenix's acquisition – 70 percent – will come from non-recourse loans.
Phoenix, an insurance and financial services company controlled by the Delek Group, has been expanding its investments in American real estate in recent years, part of a broader strategy by major Israeli insurance groups searching for investments with steady long-term cash flows.
The portfolio of properties comprises 223,000 square meters of floor space spread over the Dallas, Houston and San Antonio metro areas. The portfolio generates a yearly net operating income of more than $26 million, reflecting a NOI return of 7.7 percent on the acquisition price. The properties have been managed by Global since 2000 and have 93 percent tenant occupancy rate. The properties each have a supermarket as an anchor tenant, including Safeway, Kroger, HEB and Walmart stores.
Phoenix is also currently in talks to acquire Israel's Renanim and Savyonim malls from Melisron for nearly NIS 1 billion.