Housing developer Nanette Real Estate Group yesterday raised NIS 214 million ($52.8 million) through a private placement of debentures with institutional investors.
The company's bonds are linked to the consumer price index and will bear 5.5% annual interest until being registered for trading. London-listed Nanette Real Estate Group, which is controlled by two publicly traded companies Olimpia (34%) and Meshulam Levinstein Contracting & Engineering (19%), together with Lehman Brothers, intends to list the bonds on the Tel Aviv Stock Exchange by the end of August 2008. After registration, the bonds will bear 4.8% annual interest. The Maalot credit rating agency has given the bonds an A/Stable rating. Midroog has given them A2 status. The bond placement was handled by the underwriting companies of Harel and Menorah-Mivtachim. Olimpia operates in Europe via Nanette, in which it owns a 29.3% interest. Its main target markets are Hungary, Poland, Romania and Croatia. It also operates via Olimpia Euro Construction.
Nanette itself specializes in initiating and constructing housing projects in Eastern Europe. The company is presently involved in 21 projects, in various stages of execution, to build 15,000 housing units. Revenues from the project are estimated to be more than €1.7 billion ($2.27 billion). Meshulam Levinstein Contracting & Engineering, co-owned by Shaul Lotan, buys land and builds housing, commercial and industrial space in Israel and abroad. It also engages in tourism services via Eshet Tours. (haaretz.com)