CIM Group to join Tel Aviv Stock Exchange to issue stock

This is the first US-based REIT to dual-list in Israel

TRD New York /
May.May 23, 2017 06:14 PM

Shaul Kuba and Avi Shemesh

The real estate investment trust CIM Commercial Trust Corp will be the first U.S. real estate fund to be traded on the equities market in Israel — if accepted to the exchange.

Earlier this month, the REIT, which trades on the NASDAQ as CMCT, registered a new security with the SEC that will be issued on the Israeli market. They simultaneously filed with the Israeli financial regulatory bodies to be listed on the TASE.

As is standard for the tender process in Tel Aviv, CIM held an auction for a group of early investors that will decide the minimum price for the stock, while the final price will be decided in a public tender. Both the common and preferred stock will be listed on the NASDAQ and TASE, but the preferred equity will be marketed only in Israel, according to the SEC filing.

Israeli business publication TheMarker first reported on the plans.

CIM TRData LogoTINY did not comment on the amount they intend to raise, but a source close to the deal said that with a market cap of $1.3 billion, they have the capacity to raise several hundred million dollars. CMCT is expected to pay a quarterly dividend on the stock.

This structure differs from other U.S. real estate companies on the TASE, who have all issued debt, and most of whom are private companies in the states.

One Ha’am is advising CIM on the deal, and Bank Leumi will be the underwriters. CIM was not immediately available for comment.

CIM, led by principals Avi Shemesh, Shaul Kuba and Richard Dressler, is active primarily on the West Coast, but has been involved in some of New York’s biggest deals as well. CIM has either co-developed or backed such projects as 432 Park Avenue, 737 Park Avenue, 305 East 51st Street, One Madison and 100 Barclay Street. In February, Japanese trading conglomerate Mitsui & Co. took a 20 percent stake in the firm, and committed to a $450 million to $550 million capital investment into the company’s investment funds.


Related Articles

arrow_forward_ios
Renderings of The William Vale and Denizen Bushwick (Credit: iStock)

All Year’s rating outlook turns negative as bondholders reject two amendments

685 Fifth Avenue and Michael Shvo (Credit: Shvo)

Shvo, partners land $120M construction loan for 685 Fifth Avenue

Canarsie Plaza and Blackstone’s Kathleen McCarthy (Credit: Google Maps and Blackstone)

Blackstone picks up Canarsie shopping plaza for $130M

Renderings of The William Vale and Denizen Bushwick with a Tel Aviv Stock Exchange ticker

All Year eyes sale of William Vale to pay off bonds

The Tel Aviv Stock Exchange (Credit: Getty Images)

All Year’s Israeli bonds tumble on $41M loss

A rendering of the The Epic in Dallas, Texas and Westdale CEO Joe Beard (Credit: Westdale, Wikipedia)

No panic: Westdale mulls $50M Series B bond raise in Tel Aviv

From left: Gary Barnett, David Lichtenstein, Larry Silverstein and Boaz Gilad with the Tel Aviv Stock Exchange

New York developers hit restart button in Israel. But has the game reset?

From left: Gary Barnett, David Lichtenstein, Larry Silverstein and Boaz Gilad with the Tel Aviv Stock Exchange

New York developers hit restart button in Israel. But has the game reset?

arrow_forward_ios
Loading...