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Southern Properties Capital Raises Additional Funds on the Israeli Bond Market

Southern Properties Capital (SPC) a subsidiary of Transcontinental Realty Investors Inc., (NYSE: TCI) and Abode Properties, both Dallas based real estate investment companies, announces an expanded bond offering in the Israeli market. The company raised an additional $39.4 million bond series B on the Tel Aviv Stock Exchange. As previously reported, TCI was the first Dallas based firm to raise capital on the Israeli bond market with its Series A bond. Prior to the Southern Properties Capital issuance, the market was previously dominated by Manhattan based companies, but has once again shown increased demand for additional bond issuers throughout the United States.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180326005139/en/

SPC, TCI, Abode Properties, and Radhan complete successful Series B Bond in Israel (Graphic: Busines ...

SPC, TCI, Abode Properties, and Radhan complete successful Series B Bond in Israel (Graphic: Business Wire)

The company’s Series A bond raised 400 million shekels, approximately $113 million. “This series B offering was for an additional 137.7 million shekels, approximately $39.4 million,” said Daniel J. Moos, CEO and President. “The company has the ability to increase the series B bond sale, and will evaluate in the near term if it wishes to elect to expand this series. Of particular note is that TCI used a portion of the Series A and Series B funds to pay off Medley Capital mezzanine loan without any prepayment penalty or yield maintenance, as well as other obligations on our balance sheet, resulting in significantly lower interest carry cost.”

Southern Properties Capital operates primarily in Texas and specializes in Class A multifamily assets in emerging markets throughout the Southern United States, corresponding with both sustainable and viable economic growth activity. The issuing entity is backed by over 3,000 multi-family units (out of a total of approximately 8,000 owned and operated by TCI), as well as over 1.5 million square feet office buildings in Texas. The company has already used funds to acquire additional multi-family assets within its strategic footprint, and expects significant expansion by continuing to utilize the Israeli bond platform.

This additional $39.4 million further exemplifies the Israeli market’s increased comfort level with American-based issuers, and especially SPC. The deal was led by Yuval Barak and Eden Ozeri from Radhan - a leading financial consultancy firm out of Israel who continue to advise the company in the Israeli market.

Transcontinental Realty Investors (www.transconrealty-invest.com) maintains a strong emphasis on creating greater shareholder value through acquisition, financing, operation, developing, and sale of real estate across every geographic region in the United States. A New York Stock Exchange company, Transcontinental is traded under the symbol "TCI". Transcontinental produces revenue through the professional management of apartments, office buildings, warehouses, and retail centers that are "undervalued" or "underperforming" at the time of acquisition. Value is added under Transcontinental ownership, and the properties are repositioned into higher classifications through physical improvements and improved management. Transcontinental also develops new properties, such as luxury apartment homes principally on land it owns or acquires.

Abode Properties is a subsidiary of Transcontinental Realty Investors Inc., (NYSE: TCI), a Dallas-based real estate investment company. Abode’s investment and strategic focus is to acquire, develop, and operate a portfolio of desirable multifamily residential properties, while capitalizing on our ability to obtain long term and static debt structures. The portfolio stands to benefit from historically established, proven, and successful operational practices, seasoned on-site management, and an experienced leadership team with forward thinking capabilities in order to realize maximum cash flows and consistent returns, while maintaining unequaled resident and customer service. We are disciplined and prudent allocators of capital and we will continue growing our geographically diverse portfolio from the Southwest to the Southeast. These markets are geographically located in areas of the country that correspond with both sustainable and viable economic growth activity.

Contacts:

Pillar Income Asset Management
Chris Childress, 469-522-4275
press@pillarincome.com

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