CASE STUDIES

Encore Properties, a Dallas-based real estate investment firm, collaborated with InFin to execute a two-series public bond issuance totaling approximately $170 million (ILS 516.8 million) in 2017. The portfolio involved 23 assets valued at $580 million, with the issuance designed to buy out existing partners and replace high-cost debt with more favorable terms. The offering was highly successful, seeing 140% over-subscription and later expanding through an additional $20 million private placement in Israel.

Encore Properties, a Dallas-based real estate investment firm, collaborated with InFin to execute a two-series public bond issuance totaling approximately $170 million (ILS 516.8 million) in 2017. The portfolio involved 23 assets valued at $580 million, with the issuance designed to buy out existing partners and replace high-cost debt with more favorable terms. The offering was highly successful, seeing 140% over-subscription and later expanding through an additional $20 million private placement in Israel.

Cornerstone, a Florida based real estate firm, is a private company, focused on affordable housing in South Florida. The company owns and manages ~14,000 affordable units.

Cornerstone Properties’ portfolio included 20 properties with an aggregate value of US$520 million and a total unit count of ~5,800 units. Led by InFin, Cornerstone Properties had successfully issued ~US$72 million as part of its initial bond offering in Tel Aviv Stock Exchange.

The bonds were rated as ilA1 (by Midroog) and were issued with a maturity of 4.5 years with a coupon of 4.9% (NIS fixed) and are currently traded at ~2.5%

The company used the proceeds for acquiring on of its funding partners and as equity for new development

Delshah Capital’s activity is focused on value-add and long-term holdings of income producing assets in NYC (residential including HUD and retail).

As of today, the company’s portfolio includes 18 assets with a total value of ~US$700m. The company’s stabilized NOI is ~US$23m and is expected to grow by ~US$12m upon the completion of the new project.

Rated at a A3, Delshah Capital had raised over US$170m to date in 3 different bond series, with durations ranging between 3.2 and 5.6 years.

Led by InFin, Delshah Capital, a NY based firm had completed its 3rd issuance raising ~NIS185m of bonds backed by a redevelopment project in Morningside Heights, NYC.

Series C was issued in a Mezzanine structure with financing up to 80% LTC of Morningside’s project; a 205 unit high-end residential project. The tender was closed at 6.15% with a final maturity of 2021 – almost 50% of a similar debt cost in the US.

The Klein Group is an income producing company who focuses on retail assets in New Jersey and Manhattan.

Led by InFin, the company had successfully issued over US$60m in 2 bond issuances in the Israel market.

As of the initial issuance, the company's portfolio included 21 assets with a total value of ~US$330m, a shareholder's equity of ~103m, and a total NOI of ~US$13m.
The company’s latest bond series were rated as iLA- (by S&P), and were issued for a maturity of 6 years at ~5.4% yield.

The bond proceeds are being used by the company for acquiring minority partners and for expanding the company's portfolio.

Recently, Klein Group refinanced part of its debt in Israel by a US$57m bond swap. According to the Offering, Klein Group offered Series A bondholders to purchase up to NIS 207,533,040 Series A bonds by way of an exchange offer, in consideration for Series B bonds, to be issued by means of an expansion of Series B. The exchange rate was set at of 1.07, and approximately 88.5% of series A bondholders accepted the offering.