Senior White House aide Jared Kushner’s family business, Kushner Cos., filed documents requesting that it raise at least $100 million through the sale of bonds in Israel.
The deal will be Kushner Cos.The first capital raising in the Israeli bond market, and the largest unsecured capital raising of a family-owned company in the United States with billions of dollars worth of apartments, office buildings and other commercial properties
Kushner Company submitted documents to the Israel Securities Authority this month and will sell the bonds on the Tel Aviv Stock Exchange. The company has used banks and equity partners to raise other forms of capital in Israel in the past.
A company spokesperson said: “Kushner is considering the option of issuing bonds on the Tel Aviv Stock Exchange.”
The Israeli bond market has become a growing source of funds for US real estate companies including Extell Development, Silverstein Properties Inc. and Starwood Capital Group.
Nevertheless, Kushner Cos.’s move is likely to renew criticism of Mr. Kushner’s role in the White House and the potential conflict of interest between his family business. Mr. Kushner, who is also the son of President Trump, has played a leading role in advancing the government’s Middle East agenda.
In addition, Trump pardoned Kushner’s father Charles Kushner this month, who was sentenced to two years in prison for tax evasion and witness tampering in 2005.
A White House spokesperson declined to comment.
After joining the Trump administration, Mr. Kushner sold his personal shares in Kushner’s property to family members to prevent conflict, but some critics said he had not done enough.
The report cannot determine what role Mr. Kushner will play in the family business after Trump resigns on January 20.
Kushner Cos. Israel may sell bonds in the first quarter of 2021. A Kushner spokesperson declined to say how the company will handle the proceeds. In recent months, due to the Covid-19 pandemic, a large number of distressed sales opportunities are expected to flood the market, and many real estate investors have begun to reserve cash.
Kushner Corporation seems to be joining this effort. This month, it sold 10 Maryland rental apartment properties in Maryland, of which about 5,500. Its value may be as high as 800 million US dollars.
The company has raised other forms of capital in Israel in the past, including loans from Leumi Bank and Hapoalim Bank.,
And equity investments from companies such as Psagot Investment House and Harel Insurance Investments and Financial Services Ltd.
Since the beginning of the Trump administration, Kushner (Kushner Cos.) has avoided new fundraising by sovereign investors, when the family caused an uproar to redeem the investment in the office building at 666 Fifth Avenue in New York City. On the one hand, Kushner’s elders are negotiating with China’s Anbang Insurance Co., which has close ties with top Chinese officials.
The negotiations between Kushner and Anbang never reached any agreement.Kushner & Company eventually sold the long-term lease of 666 Fifth Avenue to Brookfield Asset Management.
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The print version appeared on December 30, 2020 and was titled “Kushner Corporation. Seeking to sell bonds in Israel.”