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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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Ramón A. Rivera-Ramos
Blue Vault Nontraded REIT and Nontraded BDC Reviews
September 1, 2016

Blue Vault helps me to stay well informed on the financial status of both open and closed nontraded REITs and BDCs, so that I can help my clients better understand the product, before they make the decision to invest and after.