New York Real Estate Developer Exits Tel Aviv Stock Exchange Early
Translated & summarized from Globes by baba
New York-based real estate firm Aya New York, owned by Amir Shriki, has fully redeemed its bonds and delisted from the Tel Aviv Stock Exchange less than a year after its NIS 292 million offering. The company faced multiple failed IPO attempts, issues with bondholders over asset liens, and a lawsuit from Value Base. Shriki cited a negative market sentiment towards American companies and a misunderstanding of the Israeli market as reasons for the early exit. Aya New York will now focus on its US operations, including acquiring distressed assets and launching a hotel chain.
The story in 5 lines · by baba
- Aya New York, owned by Amir Shriki, has fully redeemed its bonds and delisted from the Tel Aviv Stock Exchange.
- The company raised NIS 292 million in bonds locally less than a year ago but faced multiple issues.
- Shriki cited a lack of understanding of the Israeli market and negative sentiment towards US companies.
- Aya New York experienced failed IPOs, asset lien problems, and a lawsuit from Value Base.
- The company will now focus on its real estate operations in the United States.
Amir Shriki, owner of the foreign real estate company Aya New York, announced the full redemption and delisting of its bonds from the Tel Aviv Stock Exchange (TASE). This comes less than a year after the company raised NIS 292 million in bonds from local investors. Shriki expressed regret for not fully understanding the Israeli capital market, citing an initial IPO attempt where he declined to take the funds due to high interest rates, only to see it reported as a failure. He believes external financial advice would have been beneficial.
During its brief tenure on the TASE, Aya New York experienced significant turbulence, including changing underwriters twice after failed bond offerings, facing issues with bondholders over double liens on its assets, and a high-profile lawsuit from investment house Value Base. These challenges led Shriki to secure a loan from Citibank to repay the Israeli bondholders three years ahead of schedule.
Shriki, who founded Aya New York focusing on income-generating properties in the US, particularly Manhattan, stated that while the experience in Tel Aviv was interesting, the sentiment towards American companies in the Israeli market was negative and unpredictable. He emphasized that his company's reputation is crucial and that the bond series was intended to build that reputation for future offerings. When it became clear the series was not perceived as high-quality, he sought a win-win solution.
The company's issues were compounded by a negative sentiment towards BVI-registered companies, a structure Aya New York used. Additionally, Aya New York was found to have pledged future revenues from its assets, which were already pledged to bondholders, a mistake Shriki claims was rectified quickly. The lawsuit from Value Base, seeking NIS 11 million for alleged unpaid advisory and distribution fees, is ongoing, with Shriki asserting the fees were offered but rejected by Value Base, who then demanded a larger sum.
Despite exiting the TASE, Shriki indicated he has not entirely closed the door on the Israeli market, suggesting potential future collaborations with Israeli equity. Aya New York is currently focused on acquiring distressed assets in New York and launching a luxury hotel chain named "Lady D."