NEW YORK, Jan. 13, 2016 /PRNewswire-iReach/ — Delshah Capital Limited, a full-service commercial real estate investment and property management company, today announced the successful public tender of over $102 million of corporate bonds (400 mm NiS), which will be traded on the Tel-Aviv Stock Exchange.
The offering was oversubscribed by more than 50% and included some of Israel’s most prominent institutional investors such as Harel Insurance, Migdalia Insurance, Meitav Pension, IBI mutual funds, Union Bank, Excellence and Menora mutual funds as well a number of major hedge funds.
The offering was supported by Delshah’s existing portfolio,with a gross asset value of over $500 million USD with a leverage rate of below of 40%, pre offering. The assets are all located in New York City, and contain prominent locations in NYC’s meatpacking district, Soho, the West Village and Herald Square. The proceeds will be used partially for investments into the existing portfolio and to fund Delshah’s pipeline of value add New York real estate investments.
“We are thrilled with the incredibly successful bond offering which came as a result of the hard work put in by our deal team” noted Michael Shah, Principal of Delshah Capital. “Our investment and asset management expertise, as well as our portfolio of cash flowing assets backed by credit tenants in prime NYC locations, was very well received by the market. It was clear during the road show that investors were getting the story behind the Company and its strategy. The Company intends to put in place a comprehensive investor relations program to keep our new investors informed about the Company’s progress. This offering puts in place a company structure which will allow Delshah to continue to take advantage of attractive investment opportunities for many years to come.”
“This successful offering is a major step for Delshah,” said Jeff Bogino, Managing Partner of Delshah Capital. “Through the public bond tender we have not only further institutionalized our platform, but have expanded our stable of capital partners to include the largest and most prominent Israeli institutional investors. We look forward to expanding those relationships over the coming years.”
Delshah was advised on the offering by the Israeli advisory firm InFin, led by Yehonatan Cohen and Yossi Levi, and the bonds were distributed by Clal Finance Underwriting. “The investors were attracted to four main themes in the Delshah offering: 1) Delshah’s consolidated 100% ownership of all of the subsidiaries, 2) the asset locations in premiere NYC neighborhoods, 3) the low existing leverage and 4) stable cash flow and in house management. Infin was able to communicate these themes to the Israeli marketplace for the Company and secure very attractive rates.” said Yehonatan Cohen. Infin also was the lead advisor for the Related Companies Israeli issuance, and is building a roster of sophisticated US real estate companies for cross border capital advisory. Delshah was represented by Goldfarb Seligman & Co in Israel, and by Kasowitz Benson Torres & Friedman LLP in the U.S., and auditing services were provided by Deloitte Israel.
About Delshah Capital: Delshah Capital is a full-service, vertically integrated commercial real estate investment firm specializing in acquiring, developing and managing multi-family, retail and office properties throughout New York City. Founded in 2006 by Michael Shah, Delshah is comprised of over 40 professionals within its commercial real estate investment and property management groups. The firm utilizes a fundamental, value-driven approach to its investments and has expertise in identifying, financing, structuring and managing real estate investments on behalf of institutional clients and for its principal account. Delshah owns a portfolio of more than 2 million square feet valued in excess of $500 million. For more information, please visit www.delshah.com.
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