Israel to launch index of North American real estate companies

25 bonds totaling $4.1B will be included

TRD New York /
Jun.June 21, 2017 04:40 PM

Beginning in July, a new index comprised of bonds issued by North American real estate companies will trade on the Tel Aviv Stock Exchange.

The exchange’s board of directors approved the measure earlier this week.

The Tel Bond Global index will include 25 bond series issued by 18 companies and totaling 14.5 billion shekel, or $4.1 billion. While the index won’t be limited to real estate companies or North American ones, at present all 18 issuers fit that category. The largest of the group is Joel Wiener’s Pinnacle Group TRData LogoTINY, weighing in at 11.1 percent of the index, across three bond series.

The remaining companies include New York heavyweights like Extell Development, Related Companies and Jeff Sutton’s Wharton Properties.

The index will trade at yields above the general corporate bond market in Israel, paying 4.7 percent on an average term of 3.6 years, as of this week. The relatively high yield reflects the spread between coupon rates for foreign and Israeli companies. That spread has been narrowing, and American companies have consistently issued bonds at under 4 percent rates in the past several months, but isn’t expected to close entirely.

The index will begin trading on July 16. [TheMarker]Chava Gourarie


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
From left: Trinity Investments CEO Sean Hehir and Benchmark Real Estate Group principals Aaron Feldman and Jordan Vogel (iStock, LinkedIn, Trinity Investments)

“Blank-check” companies make a comeback in real estate

“Blank-check” companies make a comeback in real estate
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

Vishaan Chakrabarti on a Manhattan real estate market without private cars

Vishaan Chakrabarti on a Manhattan real estate market without private cars
Starwood Capital Group CEO Barry Sternlicht (Getty)

Starwood eyes $11B raise for real estate, distressed bets

Starwood eyes $11B raise for real estate, distressed bets
Silverstein Properties chairman Larry Silverstein (Getty)

Silverstein Properties raises $30M on Israeli bond market

Silverstein Properties raises $30M on Israeli bond market
NY Community Bank president Joseph Ficalora

NYC’s biggest multifamily lender says rent collections are holding steady

NYC’s biggest multifamily lender says rent collections are holding steady
Vishaan Chakrabarti of Practice for Architecture and Urbanism and Hiten Samtani of The Real Deal (Getty)

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?

The REInterview: What if Manhattan had four Central Parks’ worth of land to play with?
arrow_forward_ios

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

Loading...