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KBS raises $216M in first phase of Israeli bond offering

March 4, 2016
Calif.-based real estate firm to become first U.S. REIT to tap Israeli debt market

March 01, 2016 04:35PM  | By Rey Mashayekhi | The Real Deal

KBS Strategic Opportunity REIT is on the verge of becoming the first U.S. real estate investment trust to successfully issue bonds in Israel. The company closed a roughly $216 million debt tender to Israeli investment funds and financial institutions Tuesday, sources told The Real Deal.

The public, non-traded REIT — managed by Newport Beach, Calif.-based real estate investment firm KBS Capital Advisors – secured the $216 million institutional tender at an interest rate of 4.25 percent, according to sources with knowledge of the deal.

The bond issuance received more than $300 million in demand from Israeli institutional investors, these sources said, with the company’s debt offering now set for a public tender that will allow a broader pool of investors to invest in the REIT.

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Matthew C. Strife
Blue Vault Services
April 11, 2016

Blue Vault's services are without question great resources for the review of the nontraded products offered.