Koor to sell stake in HSBC building in NY to sister firm

TEL AVIV: Israeli holding company Koor Industries agreed to sell its 50 percent stake in the headquarters of HSBC Holdings in Manhattan for $138 million to its sister company Property and Building Corp, which owns the other half.

Koor and Property and Building agreed to acquire the Fifth Avenue building in late 2009 for $353 million. The deal closed in April 2010.

Most of the building is leased to HSBC under a 10-year contract, Koor and Property and Building, both subsidiaries of IDB Holding Corp , said on Sunday.

The building has existing external financing of $210 million.

The deal is subject to approval by shareholders of both companies as well as the financing bank.