Gazit-Globe
Gazit-Globe in a Major, Strategic Transaction: Acquires Norway’s Sektor Through Its Subsidiary, Citycon, for EUR 1.47 Billion

DGAP-News: Gazit-Globe

2015-05-25 / 15:46

---------------------------------------------------------------------

Chaim Katzman, Chairman of Gazit-Globe and Citycon: 'This Transaction
Strengthens the Position of Gazit-Globe as a Leader in the Global Shopping
Center Industry' 

TEL-AVIV, Israel, 2015-05-25 15:46 CEST (GLOBE NEWSWIRE) -- Gazit-Globe
(NYSE:GZT) (TSX:GZT) (TASE:GZT), one of the world's leading multi-national real
estate companies focused on the management, acquisition, development and
redevelopment of supermarket-anchored shopping centers in major urban markets,
announced today that its subsidiary, Citycon (42.8%), entered into an agreement
to purchase all of the shares of Norway's second largest commercial real estate
company, Sektor Gruppen, for consideration amounting to approximately EUR 1.47
billion subject to customary balance sheet and post-closing adjustments. The
consideration will be paid in cash (approximately EUR 541 million) and by the
assumption of debt. Citycon will become the largest publicly-listed shopping
center company in the Nordic region and the third largest in continental
Europe. 

Sektor Gruppen is a private company focused on the development and operation of
supermarket- anchored shopping centers in Norway. The majority of its assets
(95%) are located in the three main economic centers of Norway - Oslo, one of
the fastest growing cities in Europe, as well as in Bergen and Stavanger, two
major growing cities bordering the North Sea. Total assets under management
exceed 600,000 sqm of which approximately 400,000 sqm are owned by Sektor.
Sektor's revenues in 2014 were EUR 127 million and its net operating income
amounted to approximately Euro 75 million. The net initial yield of the assets
is approximately 5.2% with the potential for substantial organic growth, which
is expected to be accretive to Citycon's earnings per share from 2016. As of
December 31, 2014, the Sektor portfolio had an occupancy rate of 96.5%. 

Citycon intends to finance the acquisition through a rights issue of
approximately EUR 600 million, a EUR 250 million bridge financing facility
obtained from a syndicate of Nordic banks, and, if necessary, from existing
credit facilities. In addition, waivers have been obtained for approximately
EUR 671 million of the existing bank financing facilities of Sektor to remain
in place upon closing. The closing of the transaction is expected to take place
in July 2015. 

Gazit-Globe has provided a commitment to subscribe for its pro rata share
(42.8%) in the rights offering, approximately Euro 257 million, while the
second largest shareholder in Citycon, Canada Pension Plan Investment Board,
CPPIB (15.0%), which is the largest pension fund in Canada, has also committed
to participate in its pro rata share of the rights issue. The transaction
advisers are JP Morgan, SEB and Pangea Property Partners. 

Based on on-going discussions between Citycon and there crating agencies,
Citycon expects that its current credit rating (BBB from Standard & Poor's and
Baa2 from Moody's) will be maintained after the transaction, subject to the
expected rights offering and other terms related to the transaction. 

Chaim Katzman, Chairman of Gazit-Globe and Citycon: 'This major, strategic
transaction further strengthens Gazit-Globe's position as one of the most
significant players in the global shopping center industry as well as
demonstrating our ability to enter into new and attractive markets, including
AAA rated countries with high barriers to entry, and become a market leader,
while further enhancing our portfolio diversification and our cash flow.' 

Katzman added: 'With this transaction, Citycon continues to establish its
position as the leading European shopping center company active in the Nordic
region and the third largest in continental Europe as it increases its asset
value to approximately EUR 5 billion. Upon completion, Citycon's portfolio will
benefit from the entry into Norway, an economy with one of the highest incomes
per capita in the world, which now will comprise 30% of Citycon's portfolio and
approximately 7% of Gazit-Globe's.' 

About Gazit-Globe

Gazit-Globe is one of the largest owners, developers and operators of
predominantly supermarket-anchored shopping centers in major urban markets
around the world. Gazit-Globe is listed on the New York Stock Exchange
(NYSE:GZT), the Toronto Stock Exchange (TSX:GZT) and the Tel Aviv Stock
Exchange (TASE:GZT) and is included in the TA-25 and Real-Estate 15 indices in
Israel. Gazit-Globe owns and operates 524 properties in more than 20 countries,
with a gross leasable area of approximately 6.3 million square meters and a
total value of approximately US$ 21 billion. 

FOR ADDITIONAL INFORMATION                                               
                                                                         
Investors Contact: IR@gazitgroup.com, Media Contact: press@gazitgroup.com
Gazit-Globe Headquarters: Tel-Aviv, Israel, Tel: +972 3 6948000          

FORWARD LOOKING STATEMENTS

This release may contain forward-looking statements within the meaning of
applicable securities laws. In the United States, these statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements involve a number of known and unknown risks
and uncertainties, many of which are outside our control, that could cause our
future results, performance or achievements to differ significantly from the
results, performance or achievements expressed or implied by such
forward-looking statements. Important factors that could cause or contribute to
such differences include risks detailed in our public filings with the SEC and
the Canadian Securities Administrators. Except as required by applicable law,
we undertake no obligation to update any forward-looking or other statements
herein, whether as a result of new information, future events or otherwise. 


         For additional information:
         Gil Kotler,
         Senior Executive VP and CFO
         
         Gazit-Globe Ltd.
         1 HaShalom Rd.
         Tel Aviv, Israel 67892
         +972 3 694 8000
News Source: NASDAQ OMX



---------------------------------------------------------------------

2015-05-25 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English       
Company:     Gazit-Globe   
 
 
             Panama        
ISIN:        PAL0605071A3  
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
361471 2015-05-25