Silverstein tests Tel Aviv’s shaky bond market with $50M raise

American real estate bonds have been tumbling since November

Feb.February 08, 2019 02:30 PM

Larry Silverstein and the Tel Aviv Stock Exchange (Credit: Getty Images and Wikipedia)

With American real estate bonds in meltdown in Israel since November, Silverstein Properties has tested the waters at the Tel Aviv Stock Exchange once again.

Larry Silverstein’s firm raised more than $50 million (or 185 Israeli shekels) on Wednesday, Commercial Observer reported.

Silverstein’s expansion of its Series-A bond was massively oversubscribed, with $130 million worth of institutional bids coming in for an offer of $51 million, according to CO. The strong showing could be an indication that investors aren’t painting American companies with a broad brush, and still distinguishing the strong investments from the rest, analysts said.

“It’s a message to the stronger companies that investors see them differently, and if they wanted to raise capital here, they can,” Tel Aviv-based analyst Nadav Berkovich told CO.

Silverstein accepted roughly $50 million in the institutional round at 97.6 cents per bond, or a 4.1 percent yield. In December, bonds from Extell Development, GFI Capital Resources, and Delshah Capital were trading at yields of more than 20 percent, while bonds from Starwood West and All Year Management, whose concerning disclosures helped kick off the market collapse, were selling for less than 60 cents on the dollar. Trading on bonds from Boaz Gilad’s Brookland Capital was stalled entirely.

Silverstein Properties, whose NYC portfolio includes office towers at 7 World Trade Center and 120 Wall Street, first broke into the Israeli debt market last May, tendering a $200 million bond offer and accepting about $175 million in the institutional round. Wednesday’s bond issuance was the first by any U.S. real estate company in Tel Aviv since then. [CO] — Kevin Sun

Related Articles

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

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

Compound CEO Janine Yorio and a Clinton Hill property available to users on Compound

Real estate’s micro-investing moment

Centrale at 138 East 50th Street and Ceruzzi Properties’ Arthur Hooper (Hooper by Sasha Maslov)

Ceruzzi Properties secures $350M to refi Midtown East tower

Denizen Bushwick at 54 Noll Street (Credit: iStock, Google Maps)

All Year closing in on $675M refi for Rheingold Brewery development

Denizen Bushwick at 54 Noll Street (Credit: Google Maps, iStock)

A major Bronx landlord is shorting All Year’s bonds. Are his concerns legit?

CrowdStreet CEO Tore Steen (Credit: iStock)

CrowdStreet hits $1B milestone, crowdfunding firm claims

Greystar CEO Bob Faith and the Parkside Place Apartments in Cary, North Carolina (Credit: Greystar and Apartments)

What Greystar’s belief in multifamily says about the health of the economy