Extell, Brookland tap Israeli bond markets to fund NYC projects

Debt issuance on Tel Aviv exchange thought to be a first for US developers

TRD NEW YORK /
Jun.June 03, 2014 09:30 AM

Extell Development and Brookland Capital have raised money through a bond offering on the Tel Aviv stock exchange. The capital-raising marks the first time U.S.-based developers have tapped Israel’s bond market to get funding for domestic projects, Brookland co-founder Boaz Gilad told The Real Deal.

Gary Barnett’s Extell raised about 945 million shekels, roughly $271 million, while Brookland borrowed 120 million shekels, about $34.5 million.

Extell will pay 4.9 percent interest on the bonds, roughly half the rate in the U.S. Brookland’s debt carries a 6.4 percent interest rate.

“There’s a huge appetite for bonds in Israel,” Gilad continued, saying that a company of Brookland’s size would be unlikely to stir up the same investor interest in New York. Brookland will use the cash to fund acquisitions in Brooklyn, he added, in neighborhoods such as Crown Heights, Bedford-Stuyvesant and Bushwick.

Representatives for Extell could not be reached, but Israeli business news website Globes reported last month that Barnett was only planning to raise about 700 million shekels, or $201.5 million. Extell will use the bulk of the money to fund real estate investments in New York. Last month, the developer closed on a $410 million refinancing of the Ring portfolio.


Related Articles

arrow_forward_ios
Extell Development's Gary Barnett (Credit: Getty Images and iStock)

Chelsea residents paid Gary Barnett $11M to protect their views from a planned tower

Central Park Tower

Extell just went public with Central Park Tower listings

Gary Barnett taps outsider as CEO of Extell

Gary Barnett taps outsider as CEO of Extell

Gary Barnett and an aerial view of 2551 Broadway (Credit: Google Maps)

Extell proposes UWS mixed-use tower after completing assemblage

From left: Bond New York's Noah Freedman, Caliber's Levi Adir, Shai Gruber and Bond New York's Bruno Ricciotti (Credit: Caliber)

Bond New York snaps up 56-agent Midtown firm

Gary Barnett

Quantifying the rise and fall of NYC’s condo market

Extell CEO Gary Barnett and a portion of the assemblage at 562-572 Fifth Avenue, 2 West 47th, and 10 West 47th (Credit: Google Maps)

Extell nabs $440M in financing for Midtown assemblage

Extell CEO Gary Barnett (Credit: Adam Pogoff)

Gary Barnett gets candid about the condo boom of the 2010s and what’s to come

arrow_forward_ios
Loading...