Gazit Globe from Israel to establish new real estate JV in Canada

Canada’s real estate market has been rebounding positively for quite some time now. Key micro markets like Toronto, Vancouver and Calgary have been doing well overall while several other untapped housing destinations are also finding more takers. Areas like Greater Vancouver and Greater Toronto should also witness major infrastructural developments that will keep spurring real estate growth in the future. With mortgage rates at comparatively reasonable levels and multiple proposed measures by the newly elected Government for affordable housing, the market should maintain its growth momentum in the future.

Canada’s real estate growth has not gone unnoticed as far as foreign players are concerned. Several global real estate firms are eyeing growth hubs in Canada as part of their future expansion plans. The latest in a long line of prospective entrants is Gazit Globe from Israel which has confirmed plans for a new real estate JV in the nation.

Gazit Globe working to establish new JV

Gazit Globe, the noted real estate investment entity from Israel, has confirmed that it will be setting up a JV (Joint Venture) with Dori Segal, its director who is based in Toronto, for the purchase and management of mixed-use real estate properties in Canada. The emphasis will specifically be on Toronto for the company since the city has been witnessing steady growth on the economic front and is fast becoming a major hub for technology companies.

Gazit Globe will hold 60% ownership of its new Canadian JV (Joint Venture) and will pump in C$60 million or approximately $45 million initially for the JV. Segal will also be putting in approximately C$40 million into the partnership. C$50 million will also be lent to this partnership by Gazit Globe. Segal will be the chief executive spearheading this joint venture which is aiming at an investment outlay of C$1 billion into real estate in the nation over a period of 5 years. Debt in Canada will also be secured for acquiring properties and the JV is already in advanced stages with regard to purchasing a commercial building in Toronto. This building is being purchased for reportedly C$7 million. The JV has worked out an agreement that Gazit Globe may jointly invest when properties worth more than C$75 million are being bought.

Segal, who is an ex-CEO at Gazit Globe, will not be appearing for re-election to the board of the company at its upcoming annual meeting of shareholders. The company has previously sold a majority of its stake in First Capital Reality Inc. from Canada in April this year as per reports. Segal will be the partner of Gazit Globe controlling shareholder Chaim Katzman. He will already resign from the company’s board soon and the partnership will be focusing on properties which have huge mixed-use prospects in cities which are densely populated. Segal himself lives in Toronto and much of the focus will be on this city as per reports.

Other updates on Gazit Globe

Gazit Globe is already changing its strategy and focusing on growth markets like Canada in recent times. The company has previously agreed to purchase 40% of Atrium European Real Estate that it does not have under ownership. This indicates a similar future growth strategy of focusing on densely populated urban zones in Eastern Europe.

Atrium has 30+ assets producing income which are valued at approximately 3 billion euros and a majority of these are situated in the Czech Republic, Poland and other areas. Buying the minority stake will provide a major boost to the portfolio of assets owned by Gazit Globe.