Kushner Cos. Plans to raise $ 100 million by selling bonds in Israel

Kushner Cos., The family business of White House senior assistant Jared Kushner, has provided documents to raise at least $ 100 million by selling bonds in Israel.

The deal would be Kushner Cos. ‘first capital increase in the Israeli bond market, as well as the largest unsecured capital increase by the family-owned business that owns billions of dollars worth of apartments, office buildings and other commercial property in the USA

Kushner Cos. Submitted the papers to the Israel Securities Authority this month and sold the bonds on the Tel Aviv Stock Exchange. The company has in the past raised other forms of capital in Israel from both banks and equity partners.

“Kushner is considering the option of issuing bonds on the Tel Aviv Stock Exchange,” a company spokesman said. “The company has had years of success with Israeli institutions as a lender and as a partner.”

Israel’s bond market has become a growing source of capital for US real estate companies, including Extell Development, Silverstein Properties Inc. and Starwood Capital Group.

The step by Kushner Cos. Will probably criticize the possible conflicts of interest between Mr. Kushner’s role in the White House and his family’s business flares up again. Mr. Kushner, who is also the son-in-law of President Trump, has played a key role in advancing the government’s Middle East agenda.

Mr. This month, Trump also named the father of Mr. Kushner pardoned Charles Kushner, who was sentenced in 2005 to two years in prison after pleading guilty to tax evasion and witness tampering.

A White House spokesman declined to comment.

After joining the Trump administration, Mr. Kushner sold personal interests in Kushner properties to family members to protect against conflict, but some critics believe he did not go far enough.

Reporting could not determine what role Mr. Kushner in the family business will have after Mr. Trump left office on January 20.

Kushner Cos. ‘Mortgage sales in Israel are likely to take place in the first quarter of 2021. The Kushner spokesman declined to say what the company would do with the proceeds. A number of real estate investors have started hoarding cash in recent months in anticipation of a spate of sales hits the market due to the Covid-19 pandemic.

It looks like Kushner Cos. This month, it placed a portfolio of 10 Maryland rental property properties with approximately 5,500 units on the block. It could be worth as much as $ 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. Has deprived sovereign investors of new fundraising since the beginning of the Trump administration, when the family’s efforts to invest in the office tower at 666 Fifth Ave. in New York City, sparked a storm of criticism. At one point, the elder, Mr. Kushner, negotiates with China’s Anbang Insurance Co., which has had close ties with Chinese top officials.

Kushner’s talks with Anbang never led to an agreement. Kushner Cos. Finally has a long-term lease of 666 Fifth Ave. sold to Brookfield Asset Management.

Write to Peter Grant by [email protected]

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In the print edition of December 30, 2020, ‘Kushner Cos. Attempts to sell bonds in Israel ‘.