Israeli holding company IDB Holding Corp said on Saturday it was close to signing a deal to acquire from HSBC the bank's headquarters in Manhattan for $330 million.
IDB said the purchase will be done through its subsidiaries Koor Industries and Property and Building Corp.
The complex at 425 Fifth Avenue and 1 West 39th Street consists of two buildings, one 29 stories high and the other 12 stories with a total of 865,000 square feet (80,000 square meters).
HSBC, Europe's biggest bank, will remain the main tenant in the building for 10 years with an option to extend its lease.
IDB said it will receive $45 million in rental income in the first year while operating expenses will total $18.5 million.
The purchase will be financed through the group's own resources, IDB said, adding that the property had strong potential, which would grow as the U.S. economy recovers.
The IDB group has been operating in recent years, alongside its holdings in leading properties in Israel, to diversify its investments abroad by taking advantage of business opportunities created by the global economic crisis, IDB said.
Property and Building and its parent company are investors in Elad IDB Las Vegas LCC, which acquired a Las Vegas Strip site to build a $5 billion resort casino.
Koor owns 2.2 percent of Credit Suisse.
IDB is also the controlling shareholder in Cellcom, Israel's largest mobile phone operator, and Super-Sol, the country's biggest supermarket chain.
(Reporting by Tova Cohen)