Blue Square Real Estate controlled by Moti Ben Moshe, which is traded in the Tel Aviv 125 and Tel Aviv 90 indices and focuses on the field of income-producing real estate, in a diverse mix of uses – commerce, advanced logistics complexes and office buildings, extensive geographical layout and attractive locations. And in the amount of approximately NIS 370 million. Among the entities that participated in the offering: Migdal, Harel, Ayalon, Hellman Aldubi, Moore and Willin Lapidot, Excellence, the Pension Fund of HHI, and others.
The Rabbinate is expected to use the full proceeds of the bond issue to repay the mall loan balance and thus the company will complete the refinancing process for the mall, a move that is expected to increase the company’s FFO by NIS 22-27 million per year.
As mentioned, the Rabbinate announced about a month ago that it has reached an understanding with the financing banks of the TLV mall to redeploy the debt in respect of the mall, including an agreement to repay the loan without an early repayment fee within a year of signing, and so two weeks after the first repayment of the loan. Inform the banks of the full repayment of the loan in the coming days.
This private placement joins 6 successful issues (3 private and 3 public) made by the company during the last nine months since the outbreak of the Corona crisis, issues with a cumulative amount of NIS 1.6 billion, as part of a move to improve the company’s debt structure and extend it.
Over the past month, as part of the annual follow-up reports of the rating companies (ratings and degrees), the rating companies decided to update the rating horizon from negative to stable, after noting the company’s conduct and ability to deal with the corona crisis.
With the repayment of the mall’s loan, the base of available assets from liens is expected to grow from about NIS 1.4 billion to over NIS 3 billion, which should significantly improve the company’s financial flexibility.
The Series F bonds are index-linked, with a maturity of approximately 3.7 years, and are rated ilA by S&P Maalot.
Moti Ben Moshe, the controlling owner of the Blue Square Oak Group and Chairman of Blue Square Real Estate, noted that: “I am happy to complete the refinancing process for the TLV Mall, a move that is not obvious during this difficult period, another move that is another milestone after completing the acquisition of 100% of the mall in early 2020 and within a complex period under the Corona Crisis. We managed to upgrade the mall’s business mix. And improve its performance, and even in this difficult year, raise the average rent in the mall.
“The completion of the bond raising over the financing loan will improve the financial relationship as we planned to do with the purchase of the mall in early 2020, I would like to take this opportunity and thank the institutional bodies for the trust in this period, it goes without saying.”
Mickey Zisman, who runs the company, noted today: “During the last year since we acquired control of the TLV Mall, we have made significant improvements and improvements in the business mix. As we observed and noted during the year, and under the Corona crisis, we report this morning the completion of a series expansion and private assignment with leading entities in the economy. “A comprehensive move to improve the company’s debt structure. This raising will allow us to repay the balance of the mall’s loan and significantly improve the financial, profit and cash indices.”
Blue Square Real Estate acquired the balance of ownership in the mall in early 2020 from Kfir and Manor Gindi in exchange for NIS 225 million and thus became the sole owner of TLV Mall, this move enabled the company to make significant improvements in the business mix and operational and financial structure of Canyon.