US real estate company Extell Development Company, owned by Gary Barnett, has published a draft prospectus for an bond offering of up to NIS 700 million on the Tel Aviv Stock Exchange, via Extell Limited. The bonds are rated A2.
Extell posted a profit of $203 million in 2013, and at the end of that year had shareholders' equity of $654 million. The Extell group is one of the largest and most active real estate developers in New York. It is the developer of the prestigious One57 project in Manhattan, a tower combining residences and a hotel and the tallest residential tower in the city. It is currently being completed, and is expected to yield revenue of $2.6 billion.
Among other assets, the company owns the 509-room W hotel on Times Square in New York, valued at $505 million.
The Tel Aviv offering will be managed by a consortium headed by Apex Underwriting and Issue Management Ltd. Law firm Shimonov & Co. and accountants Kost Forer Gabbay & Kasierer are acting for Extell.
Extell is making the offering in order to finance real estate investments in the US, chiefly in New York.
The Extell group was founded in 1989. Gary Barnett was named Most Powerful Person by the New York Observer magazine in 2013.
Prices per square foot rose in Manhattan in 2013, with high demand for luxury apartments, Extell's specialty. In January 2014, prices were estimated at $1,302 per square foot, 10% more than in January 2013. The average rent in Manhattan in October 2013 was $4.73, compared with $4.61 in October 2012.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2014
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