Kushner Cos., The family business of White House chief assistant Jared Kushner, has filed documents to raise at least $ 100 million by selling bonds in Israel.
The deal would be Kushner Cos. the first capital increase on the Israeli bond market, as well as the largest capital increase unsecured by the family-owned business that owns apartments, office buildings and other commercial property worth billions of dollars in the US
Kushner Cos. He submitted the documents this month to the Israeli Securities Authority and will sell the bonds on the Tel Aviv Stock Exchange. The company has raised other forms of capital in Israel in the past from both banks and capital partners.
“Kushner is considering the option to issue bonds on the Tel Aviv Stock Exchange,” a company spokesman said. “The company has had years of success working with Israeli institutions both as a borrower and as a partner.”
The Israeli bond market has become a growing source of capital for US real estate companies, including Extell Development, Silverstein Properties Inc. and Starwood Capital Group.
However, the Kushner Cos movement. He will rekindle criticism of potential conflicts of interest between Mr Kushner’s role in the White House and his family’s business. Mr. Kushner, who is also President Trump’s son-in-law, has played a key role in advancing the administration’s Middle East agenda.
Trump also pardoned Kushner’s father, Charles Kushner, who was sentenced in 2005 to two years in prison in 2005 after pleading guilty to tax evasion and falsifying witnesses.
A White House spokesman declined to comment.
After joining the Trump administration, Mr. Kushner sold personal stakes in Kushner properties to family members to protect himself from conflict, but some critics say he did not go far enough.
The report could not determine what role, if any, Mr. Kushner would play in the family business after Mr. Trump left office on January 20th.
Kushner Cos. the sale of bonds in Israel will probably take place in the first quarter of 2021. Kushner’s spokesman declined to say what the company will do with the proceeds. A number of real estate investors have begun stockpiling cash in recent months, waiting for a wave of difficult selling opportunities to hit the market due to the Covid-19 pandemic.
Kushner Cos. He seems to be joining this effort. This month, he made available a portfolio of 10 Maryland apartment rentals with approximately 5,500 units. It could be worth up to $ 800 million.
The company has raised other forms of capital in Israel in the past, including loans from Bank Leumi and Bank Hapoalim,
as well as equity investments from companies such as Psagot Investment House and Harel Insurance Investments and Financial Services Ltd.
Kushner Cos. It has moved away from new fundraising by sovereign investors since the beginning of the Trump administration, when the family’s efforts to save its investment in the office tower at 666 Fifth Ave. in New York City triggered a storm of criticism. At one point, the old Mr. Kushner was negotiating with the Chinese company Anbang Insurance Co., which had close ties with top Chinese officials.
Mr Kushner’s talks with Anbang never led to a deal. Kushner Cos. He eventually sold a long-term lease of 666 Fifth Ave. to Brookfield Asset Management.
Write to Peter Grant to [email protected]
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It appeared in the printed edition of December 30, 2020 under the name of “Kushner Cos. They are looking to sell bonds in Israel. ”