Israeli Businessman Amos Luzon Buys Troubled US Firm for Bargain Price

Businessman Amos Luzon has completed the acquisition of Kohan Properties, a US commercial real estate company, for less than 20 million shekels. The deal, finalized over the weekend, comes after Kohan Properties faced financial turmoil due to its founder, Mike Kohan, allegedly misusing company funds to cover private loans. Luzon, along with Oren Halfon's Alpha Fencing company, acquired control of Kohan Properties for 19.5 million shekels.

Kohan Properties was previously taken over by businessman Natanel Lorenz, who had provided a loan of approximately $4.6 million to the former owner, with all company shares pledged as collateral. Lorenz seized control after Mike Kohan's alleged misappropriation of millions of dollars from the company's coffers, despite promises to cease such actions. Lorenz, a UK-based lender, then sought a buyer for the company.

Sources close to the deal described it as a "serious bonanza," noting that Luzon and Halfon are acquiring a company with $280 million in equity and $740 million in assets for a fraction of its stated value. Luzon plans to explore the company's 35 properties across approximately 19 US states in the coming weeks. The acquisition is intended to establish a commercial real estate arm for Luzon in the United States.

This acquisition echoes Luzon's previous successful turnaround of A. Dori Group in 2016, which he purchased for about 10 million shekels when it was in distress. He has since significantly improved its value, leading to its current market capitalization of over 2 billion shekels. Luzon, who holds a 58% stake in the rebranded Luzon Group, sees significant potential in Kohan Properties, similar to his past successes.