Kushner Companies has filed paperwork to raise at least $100 million by selling bonds on the Tel Aviv Stock Exchange, WSJ first reported. The deal would mark the company’s first capital raise on the Israeli bond market, and is likely to take place in Q1 of 2021.
- Source of capital: Prominent investors like Stephen Ross, Gary Barnett, Larry Silverstein, and Jeff Sutton have raised debt in Tel Aviv. In 2018, bond issuances reached a staggering $5.7 billion. The value proposition –– before the dollar weakened –– was previously enticing and rather straightforward: secure mezzanine debt in the United States that carried an 10% -11% interest rate or a fixed coupon of less than 5% in Tel Aviv.
- Industry thinks Kushner is returning: The firm recently hired Yoni Ofir, the former head of investments at investment firm Altshuler Shaham to lead the effort. With limitless cheap financing in the United States, it’s certainly noteworthy that the real estate firm is raising debt in Tel Aviv, especially with 1 USD equaling 3.21 Israeli Shekels
- The family wants the story out there: Kushner-owned Commercial Observer reported on December 30th that the real estate firm is considering raising a $500 million fund from private investors in Israel. This was a day after the WSJ exclusive report suggesting the family clearly wanted this message reaching the Israeli investment community.
- Politics now cloud everything: WSJ noted that the move by the firm is likely to rekindle the criticism of the potential conflicts of interest between Kushner’s role in the White House and his family’s business. Jared played a lead role in advancing the administration’s Middle East agenda, which lead to the signing of the Abraham Accords.
- Reading the tea leaves: Jared’s Middle East connections are the best in the world, and the company has not raised money from foreign sources since he’s been in the White House. That’s about to change. Industry insiders envision Jared returning to the family business. It’s a question of not if but when.
- Miami-bound: Ivanka and Jared bought a $30 million-plus lot of land on Indian Creek Island known as the “Billionaire’s Bunker,” NYPost reported last month. It measures 1.84 acres with 200 feet of private waterfront. The couple still own a New York City apartment on Park Avenue and have no plans to sell. They are also expanding their cottage by the Trump National Golf Club in Bedminster, NJ.