Israel's Harel in deal to buy U.S. office building

TEL AVIV Sun Apr 7, 2013 4:20am EDT

TEL AVIV (Reuters) - Subsidiaries of Israel's Harel Insurance Investments and Financial Services (HARL.TA) acquired an office building in Minneapolis along with an Israeli institutional investor and an American investor for $277 million.

Harel's share in the partnership is 49 percent, the Israeli insurer said in a statement on Sunday. The Israeli institutional partner will hold 25 percent and the American investor, who will manage the property, will have 26 percent.

The 51-storey building in the business centre of Minneapolis has 130,000 square meters of space for rent, of which 94 percent is already occupied.

The purchase will be financed through the partners' capital and bank credit extended by a U.S. financial institution.

(Reporting by Tova Cohen)

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