Southern Properties Capital Raises Additional Funds on the Israeli Bond Market
March 26 2018 - 8:00AM
Business Wire
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.
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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.
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Pillar Income Asset ManagementChris Childress,
469-522-4275press@pillarincome.com
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