Harel, Beacon buy two office buildings in Houston

TEL AVIV Sun Oct 10, 2010 4:20am EDT

TEL AVIV Oct 10 (Reuters) - Israel's Harel Insurance Investments & Financial Services (HARL.TA) said on Sunday it acquired together with Beacon Investment Properties two office buildings in Houston, Texas, for $85.2 million.

Harel, which holds 49 percent of the rights to the buildings, said its investment was largely financed by money from its pension and providents funds and is expected to yield 9.13 percent for investors in its funds.

One building is located on West Loop South in Houston and is 96 percent occupied by engineering group WorleyParsons (WOR.AX), which has a rental contract until 2018. Rental income from the building amounts to $4.9 million a year.

The second building, in the Greenway Plaza office complex, has several tenants and provides rental income of $2.88 million a year.

Harel, Israel's third largest insurer, has recently expanded its real estate portfolio, buying buildings in New York as well as New Jersey and Connecticut for $80 million. It also owns buildings in England, Germany and Israel. (Reporting by Tova Cohen; Editing by David Fox) (telaviv.newsroom@thomsonreuters.com; +972-9-899-0222; Reuters Messaging: tova.cohen.reuters.com@reuters.net) (If you have a query or comment about this story, send an e-mail to news.feedback.asia@thomsonreuters.com)

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