The Israeli income-generating real estate company Property and Building Corp. Ltd. (TASE:PTBL) The Tel Aviv Stock Exchange (TASE) announced that it is in talks to lease 330,000 square feet (30,600 square metres) at 10 Bryant Park in New York City, known as the HSBC Tower. According to US media reports, negotiations are underway with tech giant Amazon, which will replace the current main tenant HSBC Bank, which will vacate 10 floors in the building. The real estate and construction stock price jumped 9% on the news.
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10 Bryant Park, or HSBC Tower is a complex of three buildings including a 30-storey office tower with a total area of 80,000 square metres, mostly offices, on Fifth Avenue in New York City, adjacent to Bryant Park.
“The Company is in negotiations with a leading international company on non-binding principles of understanding for the lease of 330,000 square feet, currently leased to HSBC, with an option to expand the leased space to the International Bank in the long term,” the real estate and construction company stated in its filing to the stock exchange. The real estate and construction company added that it is not certain that the talks with the two parties will mature into a binding agreement or that a lease contract will be signed.
The value of the property has declined in recent years
According to an investor presentation in September, the property is currently at 98% occupancy, while HSBC Bank, a major tenant, announced about two years ago that it will leave the tower and is expected to vacate the building in April 2025. It is an anchor tenant that accounts for 61% of the property’s income generating income. . The bank also rented safe rooms in the building and extended the agreement in the basements until July 2030.
The real estate and construction company has been trying to sell the tower in recent years to no avail, during which the value of the property has declined, reaching its value now to $650 million, compared to $855 million at the end of 2021.
Tech giant Amazon already has offices on Fifth Avenue in Manhattan, New York, not far from the tower, in what was once the flagship store of the Lord & Taylor chain.
Published by Globes, Israel Business News – en.globes.co.il – on October 31, 2024.
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