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Israeli Real Estate Firm Forms US Investment Subsidiary

Gazit Horizon president and CEO Jeff Mooallem Gazit Horizon president and CEO Jeff Mooallem

NEW YORK CITY—Global real estate company Gazit-Globe Ltd., headquartered in Tel-Aviv, has formed a new U.S. investment subsidiary, Gazit Horizons Inc. that will invest in income producing real estate nationwide.

Gazit Horizon will have offices in New York City and Miami and will be headed by newly named president and CEO Jeffrey Mooallem, who most recently was a managing director at Federal Realty Investment Trust. The 19-year veteran of the real estate industry previously held executive posts with Equity One, Inc. and privately-held Turnberry Associates in Miami.

“We are very excited to be announcing the formation of Gazit Horizons, and equally as excited that Jeff has agreed to come on board to lead the team,” says Dori J. Segal, CEO of Gazit Globe, Ltd.  “With the recent merger of our former U.S. subsidiary, Equity One, Gazit Globe’s business in the United States is now leveraged to a low level that makes additional U.S. investment compelling and accretive for our shareholders, while at the same time allowing us to use other sources of capital and cash flow to continue to pay down debt in Israel.”

He adds that the new company’s investment strategy will be more typical of a private equity investor, but with a longer time line. The firm will predominantly use its own capital.

Back in March, Gazit-Globe completed the merger of subsidiary Equity One and Regency Centers Corp. The newly merged company operating as Regency reported at the time a portfolio of 429 retail properties in the U.S. with a total gross leasable area of 5.3 million square meters and an equity market cap of approximately $12 billion.

“The chance to work again with a company of Gazit’s stature and build a new investment platform in the United States is a special and unique opportunity,” says Mooallem. “With our collective experience and relationships in the industry, we are well positioned to acquire assets in some of the strongest and fastest growing markets in the country.”

He envisions Gazit Horizons will acquire “larger and more complicated assets across multiple product types, and create additional value through asset management, redevelopment and repurposing.”

Parent company Gazit-Globe as of year-end 2016 owned and operated 426 properties in more than 20 countries with a gross leasable area of approximately 6.6 million square meters (approximately 71 million square feet) and a total value of approximately $22 billion.

 

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