The headquarters of Harel Insurance Investments, in Ramat Gan, Israel. Photo: Zairon via Wikimedia Commons.

Israel’s Harel Insurance Investments and Financial Services said on Wednesday it would invest up to $1.2 billion together with Canada’s Manulife Investment Management in US real estate.

Manulife Investment Management is the investment arm of Toronto-based Manulife Financial Corp .

Harel said the two firms will invest in offices, industrial properties and residential real estate.

This agreement is part of Harel’s strategy to diversify its real estate portfolio with the aim of creating steady yields for its clients at low risk, the firm said.