Retail Landlord Gazit-Globe Sets Sights on New York

By Keiko Morris Features Dow Jones Newswires

Global retail landlord Gazit-Globe Ltd. is planning to open a private U.S. subsidiary to invest in real estate in New York and other major metropolitan areas, the company said.

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Gazit-Globe, which is based in Israel and has focused on supermarket-anchored shopping centers in urban markets, already has a presence in the U.S. and New York City area through its subsidiary, Equity One Inc., a shopping-center real-estate investment trust.

Earlier this year, Equity One merged with Regency Centers Corp., forming a company with 429 properties.

Urbanization has been an important theme for the company and its subsidiaries, which have properties in many European countries, Canada, the U.S., Israel and Brazil. Six years ago, Gazit-Globe decided to focus exclusively on shopping centers in densely populated urban hubs within economically stable countries, shedding properties that didn't fit the bill.

One example of that strategy was Equity One's 2011 acquisition of a Chelsea condominium that now houses upscale department store Barneys New York.

Gazit-Globe's new U.S. division is looking for potential investments in a range of property types, especially commercial and mixed-use properties, a company spokesman said. Despite the growth of e-commerce and store closures, retail real estate remains attractive, said Chairman Chaim Katzman.

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"Brick-and-mortar [retail], where 80% to 90% of the sales take place, is still a powerful environment for brand building, cultivating loyalty and experiential retail," he said.

Write to Keiko Morris at Keiko.Morris@wsj.com

(END) Dow Jones Newswires

April 23, 2017 11:25 ET (15:25 GMT)