Property & Building gets deal to refinance HSBC Tower

JERUSALEM, July 1 (Reuters) - Israel's Property & Building said on Sunday it had finalised a deal with JP Morgan to refinance its borrowing on the HSBC Tower in New York in the amount of $400 million over 10 years.

The current financing on the Fifth Avenue building is about $240 million.

Property & Building, the real estate subsidiary of holding company IDB, said the new agreement would generate cash flow of about $150 million.

It bought the building two years ago for around $350 million.

Last month, the company said it had signed a non-binding term sheet with a foreign bank to refinance its borrowing on the building.

Property & Building's shares were up 1.5 percent in late morning trade in Tel Aviv. Its bond prices were up 0.6 to 0.7 percent. (Reporting by Steven Scheer)