Related, GFI look to raise capital on Israeli stock exchange

Companies follow Extell, Brookland to Tel Aviv

TRD New York /
Mar.March 03, 2015 04:33 PM

Following the footsteps of Extell Development and Brookland Capital, the Related Companies and GFI Capital Resources Group are the latest U.S. firms to tap the Israeli bond markets as a source of capital.

The two development firms, helmed by Stephen Ross and Allen Gross, respectively, issued draft prospectuses last month seeking to raise a sum estimated to be more than $200 million on the Tel Aviv stock exchange, Israel Real Estate News first reported.

While Related’s prospectus did not reveal a dollar figure, the publication said previous reports indicated the company would look to raise roughly $113 million through “a Virgin Islands unit called Related Commercial, which controls seven residential and commercial properties in New York, one under development. The completed properties are 95% to 100% occupied and valued at about $800 million.”

GFI was looking to raise $100 million through a Virgin Islands entity that owns 19 commercial, residential and office properties the firm valued at $220 million, according to Israel REN.

Another U.S. developer, Michael Stern’s JDS Development Group, was also preparing a prospectus looking to raise roughly $40 million to $55 million.

“U.S. developers are turning to an unlikely place like Israel to sell debt because interest rates are low and capital is readily available,” Israel REN said. “The Israeli market is accessible to ordinary companies – those not structured as real estate investment trusts, or REITs – that want to raise relatively small amounts of debt from the public.”

Last summer Extell and Brookland raised a combined $305.5 million through on bond offering on the Tel Aviv exchange, the first time U.S.-based developers went to the Israeli market seeking funding for domestic projects, as The Real Deal reported. [Israel REN] — Rich Bockmann


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings

GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings

GFI and Marx raise north of $60M apiece in Tel Aviv bond offerings
Stephen Ross and Time Warner Center (Getty)

Stephen Ross slashes price of Time Warner Center penthouse

Stephen Ross slashes price of Time Warner Center penthouse
Wesley Edens and 520 West 28th Street, Unit PH37 (Getty, Compass)

Fortress Investment chairman buys steeply discounted Zaha Hadid penthouse

Fortress Investment chairman buys steeply discounted Zaha Hadid penthouse
Starwood's Barry Sternlicht and Pacific Retail's Steve Plenge with Parkway Plaza mall in San Diego and the Plaza West Covina mall in Los Angeles (Getty, Starwood, Pacific Retail)

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off

Last bidder standing has big plans for Starwood’s troubled mall portfolio. But first, creditors must sign off
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
President Donald Trump and Joseph Biden (Getty, iStock)

Real estate donors backing Biden over Trump

Real estate donors backing Biden over Trump
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...