Kushner Cos., A family business owned by senior White House adviser Jared Kushner, has filed for at least $ 100 million in proceeds from the sale of securities 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 company that owns billions of dollars in apartments, office buildings and other commercial properties in the United States
Kushner Cos. He presented the papers this month to the Israeli Securities Authority and would sell the securities on the Tel Aviv Stock Exchange. The company raised other forms of capital in Israel in the past, both from banks and partners.
“Kushner is considering the option to issue securities on the Tel Aviv Stock Exchange,” said a company spokesman. “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.
Still, the decision by Kushner Cos. It will likely rekindle criticism of potential conflicts of interest between Kushner’s role in the White House and his family’s business. Kushner, who is also President Trump’s son-in-law, played an important role in advancing the government’s agenda for the Middle East.
In addition, Trump pardoned Kushner’s father, Charles Kushner, who was sentenced in 2005 to two years in prison after pleading guilty to tax evasion and tampering with witnesses.
A White House spokesman declined to comment.
After joining the Trump administration, Kushner sold personal holdings on Kushner’s properties to family members to protect himself against conflict, but some critics say he didn’t go far enough.
The reports failed to determine what role Kushner will play in the family’s business, if any, after Trump leaves office on January 20.
Kushner Cos. ‘The sale of securities in Israel is likely to take place in the first quarter of 2021. Kushner’s spokesman declined to say what the company would do with the funds. Several real estate investors have started to stock up on cash in recent months, in anticipation of a wave of problematic sales opportunities that hit the market because of the Covid-19 pandemic.
Kushner Cos. It seems to be joining this effort. This month, she placed a portfolio of 10 apartment rental properties in Maryland with about 5,500 units on the block. It can 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 like Psagot Investment House and Harel Insurance Investments and Financial Services Ltd.
Kushner Cos. It has avoided further fundraising from sovereign investors since the beginning of the Trump administration, when the family’s efforts to save its investment in the 666 Fifth Avenue office tower in New York sparked a storm of criticism. At one point, Mr. Kushner was negotiating with China Anbang Insurance Co., which had close ties to senior Chinese officials.
Kushner’s talks with Anbang never led to an agreement. Kushner Cos. He ended up selling a long-term lease of 666 Fifth Ave. to Brookfield Asset Management.
Write to Peter Grant at [email protected]
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Published on December 30, 2020, print edition as’ Kushner Cos. Seeks to Sell Securities in Israel. ‘