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Multi Capital Group Completes 200 Million Shekel Bond Raise in Tel Aviv

New York NY

This week Multi Capital Group successfully completed The Leser Group LTD bond offering in Tel Aviv, of up to NIS 200 million.

U.S. real estate markets are suffering a serious retreat because of the subprime mortgage crisis and resulting credit crunch in the United States - and Tel Aviv is showing a lot more demand for bonds than New York.

Leser's private assets are estimated at NIS 500 million, on top of any money he will raise on the Tel Aviv Stock Exchange. Ratings agency Midroog has given the bond issue an A1 rating.

It's true that usually, it's the Israelis seeking capital in New York, not the reverse. However: "Recently we have received many requests from companies managed in the U.S. and controlled by private shareholders who have a connection with Israel," said Avital Bar-Dayan, senior vice president and head of the Corporate and Financial Institution Department at Midroog.

"This is to try to take advantage of the conditions in Israeli capital markets to raise funds to expand their activities in the U.S."

Leser says he wants to raise the money to take advantage of opportunities in the real estate market. He says a number of property developers are over-leveraged and will reach a situation where they will have to sell off assets quickly. Leser wants to be ready to buy at good prices.

His first rule is to buy problematic income-yielding properties and better them. He has bought and renovated around 100 such properties in 30 year. His second rule is to rent out such properties on long-term contracts to high-quality clients. Most of his properties are rented out long-term to public bodies, banks or large businesses.

The Leser Group has 17 properties with 80,000 square meters, which generate revenues of $20 million a year. Sixteen of them are in Brooklyn where he lives. One is in the Bronx.

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Multi Capital Group (www.Multi-Capital.com) is an international Real Estate Investment Banking firm prominent in debt and equity placement, investment sales, and commercial and residential loan sales. Its clients include some of the most active owners, developers and institutions nationwide.